Why use tax money for economic stimulus? Cut credit card interest in half instead, and...

[yurbud]

ban foreclosures for the rest of the year.

The financial sector, and credit card companies in particular are draining off a lot of people's income with fees and especially interest rates that would make Tony Soprano blush.

Their top rates should be cut in half--maybe prime plus 10% max, and caps on late and other hidden fees.

Likewise, since mortgage companies gave loans to people HOPING they wouldn't be able to keep up with their payments, the solution should be a moratorium on foreclosures until the whole deal is straightened out. That could give banks a powerful incentive to clean up their own acts too since they wouldn't be able to collect the prize of their scam.

The rebate check deal is a scam. It is essentially giving us money we already gave them or effectively giving us a loan that we will end up repaying in taxes later.

The reason why Bush and Congress like the idea is those rebate checks will go to pay bills owed to those very financial institutions that created the problem.

Fuck that.

It is time for Congress to snip the balls off the bull in our China shop so he calms the fuck down.

[dkf]

1. I like Dodd's(?) idea of the Govt. buying the underlying loan

at current market price (which is probably much lower than the face). Then the investor has taken the loss, but the mortgage will now reflect the lower value and payments may be manageable and refinancable.

At least this is how I think it would work.

[yurbud]

4. that's a good idea. They should do that with all student loans too.

[Cleita]

2. How about public works projects to repair our crumbling

infrastructure to create jobs and therefore money in peoples pockets to spend at stores? It worked for FDR. Why do our Democrats back a policy proved to have failed in the past instead of designing one that has proved to be successful in the past?

[yurbud]

3. because the economic stimulus is meant to make you pay your bills

it's to help your creditors, not you.

[Cleita]

7. Yep, exactly. n/t

[stravu9]

10. Yep!

You said it!

[pitohui]

5. i likr cleita's idea

the OP's suggestion makes no sense at all, it rewards the people who made the poorest lending and borrowing decisions, and encourages people to consider in the future that they may again be bailed out, so that they will have a sound reason to continue making poor, overly risky decisions

it also guarantees that people who made smart decisions and didn't borrow on expensive credit cards would be left out of any rebate/relief

re-building the infrastructure is a win/win for everyone, even if you don't get one of the jobs yourself, we all enjoy the better roads, bridges, dams, and levees that are crying out for repair

[Cleita]

8. Not only that, those wage dollars will flow into the

economy with people buying more with their paychecks, something the stimulus package is supposed to do but can't because it's so meaningless.

[TahitiNut]

6. How about not charging interest at all?? After all, that's the "Chirstian" way.

Funny how "Christians" don't adhere to the Bible when it comes to charging interest. Oh well. :shrug: What's a little Usury among Friends?

[Greyhound]

9. The problem with your proposal is that it is the same people running

the game that control the government and the Fed. Prime plus caps would only ensure that the prime is escalated and inflation will reign. An absolute cap, say 12%, might be helpful in the short term but the long term solution will be to re-work the whole model, and that ain't gonna happen while the rulers stay in power.

BTW, 12% interest means you will double your investment in 6 years.