850 Billion Dollar Stimulus Package

Ah... now here's where it gets interesting. I, personally, think this package is NOT for the good of the country. I, therefore, am against it. I applaud that the Republicans are against it too. However, I get the feeling that you are right about the reason they are against it. It probably does come down to partisan bickering, I guess I'm just a bit hopeful that maybe the republican party is starting to pull around to it's conservative values that have been so sorely lacking the last 8 years.

If the Republicans are blocking it because they disagree that this is the action to take, then bravo. If they're doing it solely for the purpose of partisanship, then it is a bad thing and I agree with you.

 

No matter what they use this so called simulous package for, unless it can slow down or stop the massive foreclosure rate, and stimulate the housing and auto sales industries the bleeding will continue.

If you have a headache and are feverish caused by an infection in a cut in your foot, taking an asprin might make the headache and fever go away, but the infection is still there. The fever and headache will keep coming back until you finally treat the infection with an antibiotic.Until you finally get an antibiotic the infection will only get worse. This stimulous package is an asprin for the headache and fever, not an antibiotic for the infection. Until they give this economy an antibiotic this is going to continue to get worse.

 

the antibiotic is leaving the market alone and let it work itself out by killing off the weak carriers. free market systems are cool like that.

 

Which is exactly why they shouldn't be giving all this money to all the banks and companies just so they can pad their books to show they are in the black. Even with all the safety valves and strings attached these banks still aren't going to help the private sector.

They aren't going to restructure peoples mortgages. They aren't going to re evaluate their homes to the current market value. They aren't going to modify anything. They aren't going to open their purse strings to open up lending for homes and autos. The subprime lenders have gone to the wayside and with so much credit taking major hits there aren't lenders for that market.

These major companies that already have all the major city, state, and federal contracts are just going to get fatter and continue to be the only companies that build our roads. Yes it will create some jobs, but what about all of the sector that isn't in construction that is suffering.

Then all of these Billions will never get paid back to the Gov't, because that is just the way it is. The Stimulus should have come as a shot to the private sector. Not give them money, that is Socialism, but create a Gov't Stimulus loan system to be paid back over X amt of years. Have a cap per household and a qualification that must be met. Make it enough to actually help those that qualify, not some 5-6 thousand, but 20-30 thousand. First the money would be paid to where it needs to go, the portfolios of these banks, Second if would get a large portion of the private sector current enough on their homes to where they wouldn't lose it and could have a company modify their mortgage. 3rd it would save a large portion of the homes from foreclosing (which would make the market start to adjust itself back up), 4th it would get paid back.

 

I listen to the Dave Ramsey Show, and he had a plan that was so simple it would never get congressional support:

1) Give a $20,000 tax credit to companies for every NET job they create for 12 months. If 3 million jobs are created, that's a price tag of $60 billion.

2) Give a $20,000 tax credit to ANYONE who buys a house. Not a tax "credit" that you have to pay back, and not just NEW homeowners. Think that would get houses moving?

Of course the only thing missing from this is how to get credit moving again. The banks will continue to be very selective on who they give credit to right now, but you know what? That's not a bad thing. It's something they should have been doing in the first place and maybe we wouldn't be in this mess.

 

absolutely. until investment in the private sector returns, then everything else is going to fail. its that simple. whats not so simple is how that should happen.

 

legacy has a point and it sounds very similar to the student loan program.

god only knows how many people that are hard working, never had credit problems, owned their own homes (not mcmansions, but affordable middle class homes) but lost their job due to this economy. those people are losing their homes right and left. its not just the "we bought the mcmansion we couldnt afford" people that are having their homes forclosed on.

those people need help, can stimulate the economy, can get the bad debt off the books for lending institutions, and families stay in their homes and not end up on the street with another house in foreclosure sitting there falling apart because there is a glut of housing. and the money gets paid back because it is a federally backed loan, not a handout.

which hornet, that is what i see as a flaw in the proposal you listed. it doesnt need to be "new" homes. their are a lot of homes out there that need to be saved. but the financial institutions "got theirs" in the first bailout and arent interested in working with the homeowner that never had bad debt till this economy gave them a blow they couldnt handle.

the govt backed student loan programs have worked for a long time, and the housing market, financial institutions, and distressed home owners could be helped with such a program. and our children, grandchildren, great grandchildren, etc wont be burdened with the debt if it a loan program, not a handout.

 

Wow, feasible answers. See it isn't that hard to figure out what could work. All you have to do is not be a politician that gets blinded by party partisanship. Of course none of this could ever work, it was thought of by citizens.

 

just free up credit for people in the private sector.

all the other stuff can wait.



in related news i hope my city gets the 2 bil it is asking for.

 

You can't borrow your way out of debt. People who can't pay their bills don't need loans. They need jobs, and if they can't find a job they need to find a way to generate income on their own by opening a business. There are plenty of rich people who need their lawns mowed and floors swept. The government needs to sit this one out.