A Modest Proposal-- Feds Pay Off Mortgages

Why not? The Fed pays off everyone's owner occupied mortgage under a million dollars. Everyone starts again at zero with full equity in property wherever property values settle. A historic buying spree would result, sending the economy into super acceleration. Make sense??

stay tuned,

surf

 

and the dollar gets crushed

 

Why should you get your $500,000 mortgage paid off when I've been trying to get my mortgage paid down and only owe $150,000 now?

This will never work. Do you see the injustice?

 

at first,yes, however, this is based on a 30 year monetary plan....

 

you will have your 150k paid off, too. i don't see the injustice, we are talking about the economic future of the USA.... who cares what happened in the past.

surf

 

I guess the only equitable thing for me to do in that scenereo is to rush out and buy that $1,000,000 estate and get a no down payment balloon loan. That shouldn't be a problem since I can point to the law showing the feds will be paying off the loan soon. No risk for the lender.

 

Total US mortgage debt is something like $10T(this number might be off by a few T) against a total M1 of $1.5T and M2 of $8.3T, your plan would create hyperinflation and destroy the dollar

 

here's my plan: have the banks forgive the debt. simple. no inflation.

 

No free lunch here, banks would take massive losses and the FDIC would have to be bailed out huge, your taxes would go up a lot to pay for it

 

But Uncle Bernake says China has lots of money and will pay for anything we want.