DON'T GIVE A BAND AID TO AN AMPUTEE

This week the President unveiled his plan to help the distressed American homeowner. This plan is like giving a band aid to an amputee. The $75 BILLION dollar bail out is not going to fix the root of the problem. The real problem is that the banks need to get rid of their toxic assets. If the government wants to help our economy they would set up a National Bank, and buy these troubled mortgage loans for 60% of the loan amount. This would give the banks the capital they need to make good loans.

This program should also stipulate that if the banks unload these assets they have to put the money back into the communities in new loans. Our tax dollars should not be used to help banks buy other banks. Any industry that gets any tax dollars should not be able to donate to any government official. Allowing Citibank to give Barney Frank money and not expecting something in return is like putting a case of scotch in front of Ted Kennedy and expecting him not to crash in to a river.

The foreclosed properties could be released in a number of ways. One of my favorites is to discount VA loans to veterans in the form of 2% lower interest rates than FHA . The men and women who serve our country deserve a cost effective house to call home. They should be able to purchase the government foreclosures for a deeply discounted price. If they are disabled due to military service they should be able buy a home with a 2% loan and the money to make it handicap accessible. I also feel they should be able to go to a state school free of charge. If it was not for our veterans we would not be free.

The government could release the homes slowly to organization's like Habitat for Humanity. The Habitat group not only makes the new homeowner work on their home, but also requires that they go thru classes on budgeting and personal finance. Something that I believe should be taught in High Schools across the country. A portion of these homes could be discounted to High Schools and Community Colleges to raise money. The schools could have classes lead by trades and business people in carpentry, plumbing, electrical, mortgages, insurance and real estate. The kids could acquire skills that could help them land jobs after they graduate. They could learn about budgeting, fund raising, finance, insurance, selling as well as the trades. After the home is sold the school could take the profit and buy another.

This program could be called the Heroes and Education plan. It could also be extended to teachers, nurses, police and firemen. All of the end users should be required to complete a personal finance program as well as be required to work for a number of hours  repairing other homes. This disposition method should not be used by appraisers in calculating home values. This program should not lower the non participant neighbors home value.

My last thought is that we need to honor those that protect and educate us. We need to be responsible and hold ourselves accountable for our actions. We need to stop being so negative and THANK GOD for all that he has given us. Remember we are Americans and we can do anything.
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