Wednesday, September 24, 2008

Financial Crisis: Helping Folks in Need, Not the Rich

Following up on yesterday's theme that the first step toward resolving the financial crisis is common sense (rather than technical expertise) and that rewarding the guilty is NOT common sense, here's another suggested route: instead of putting hundreds of billions of dollars in the hands of the wealthy financial "experts" on Wall Street and in Washington who caused this crisis, why not use that money to extend short-term, low-interest loans to low- and medium- income individuals who need loans either to continue making mortgage payments or to run small businesses?

* Federal loans
* No points, fees, gimmicks
* 1% interest per year for five years
* for individuals with annual income less than $75, 000 or businesses employing fewer than 12 people
* maximum loan size $100,000.

In brief, the loans would be bandaids to give short-term help to the folks who need help. There may well be many legitimate reasons why this would not work - but before supporting an historic give-away to the rich and corrupt and incompetent, I would like to hear what those reasons might be.

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