A presidential hopeful who shall remain unnamed wants to buy troubled mortgages in order to stabilize the economy.
Let's say you are one of these beneficiaries and get your interest slashed in half. Pretty good for the many whose dream of full house property will be fulfilled before they retire, and a little good for those few who borrowed more money than they can make in their lifetime.
On the other side of the mortgage swap, the loaning bank runs home with X number of dollars it feared would never be paid back, and offers this money out for another sucker who wants to fall into debt.
Quite possibly, the "freed up money" may be lent to the same person who just got "saved" by a federal loan.
So, is this plan just a trick to bury this nation's citizens into more [bad] debt? Is this taking away the only good thing about the credit crisis: that the only way out is through eliminating debt?
On the other hand, in order to make money, you gotta spend money. Should the representatives loan the money only to those that will create wealth?
If anybody has the answer, please post it below.
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