The Three Percent Solution

Six issues in the news last week struck me:

*Large banks are too big to fail and received massive infusions of cash via the TARP program.

*Banks are kicking foreclosures into high gear.

*Banks are getting funds from the federal reserve at 0% to ¼% interest rates.

*Large banks reported record profits for the quarter.

*The U.S. government wants banks to loan but banks have changed the rules for giving loans. This disqualifies many people, including many people with good credit.

*The economy still sucks and desperately needs money to flow.

And so I suggest the 3% solution:

Our government needs to bypass the banking industry because banks are not helping. Banks are harming our country. Banks are impeding the economy and our future. Banks contributed to the problem and are now taking advantage.

If you are a current home owner holding a mortgage, any home owner holding any mortgage (no matter what your credit), you may present your mortgage to the government, sign a note and replace your current mortgage with a non-assumable 15 or 30 year mortgage with a three-percent interest rate. That’s right, you can burn your old mortgage. That’s right, you don’t have to qualify. You just have to have a mortgage. It doesn’t even have to be up to date. If you are a homeowner and hold multiple mortgages, you can get multiple new mortgages from the government.

All foreclosure proceedings are stopped in their tracks (Disclaimer - We are current on our mortgages and have never defaulted on a loan of any type)

I guarantee that this will piss off the banks and get the economy moving within three months.

Home owners don’t have to take part in the process, but if they do then they are responsible for the entire balance on their mortgage. If your house is under water (like one of our mortgages), that’s tough. You’re responsible for the entire balance.

If you miss three payments, you’re out. No questions asked.

The three percent solution is what our country needs. Now.