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To apply bailout money to morgages
What would the effect be if the us government instead of giving a bailout directly to the banks were to give the banks a payment of some percentage of the mortgages held by the banks? Wouldn't that give the banks the same money while at the same time reducing the burden of debt on individual us mortgage holders? If this idea has any merit, could it be applied now by insisting that any bailout money not repaid to the Us Government be applied to all the mortgages held by the bank equally? Granted this might end up being a small percentage, but any percentage would improve the situation for individual debtors. If this idea has no merit please explain why, and if it is meritorious what can be done to advance the idea?
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Everett Hill
However, they are ignoring people who are not making payments for their mortgages. They are free to change the mortgage rates if the people come in and apply for them. But they often choose not too.
The greatest problem with this issue is that so many people were given loans that did not qualify and the housing market was so inflated. More money was loaned out than was reasonable or realistic. Now, the banks are suffering, and people, for their poor decision making process in this.
I do not wish to be mean, but let them learn from it. The banks are surviving and so are people. It is not pretty, but they will not make the same mistake twice.
russell lester