TED Conversations

russell lester

Orchardist, Grange

This conversation is closed. Start a new conversation
or join one »

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?

0
Share:

Showing single comment thread. View the full conversation.

  • Jan 13 2013: Banks could do this now without the government providing the funds. But they choose not to.

    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.
    • thumb
      Jan 13 2013: What if the banks were to pay back the money by appling it toi the credit card debts or student loans that people carry? MANY students labor forever under those loans

Showing single comment thread. View the full conversation.