Craziest Bail Out Plan Yet
Rumor has it that there is a plan floating around Washington for a new “stimulus” plan or bailout.
The plan would mirror the “rebate” plan that passed recently only the checks would be for $150,000 for each individual, and $300,000 for a couple.
This plan would supposedly get everyone out of the mortgage crisis. But to me it would have several obvious flaws.
The first is it asssumes that everyone would pay off their mortgage; and maybe they would, but given the latest real estate experience how many average Americans could actually avoid the temptation to refinance their house?
With this much debt creation/money printing, inflation would go through the roof so it is very likely the American home could triple or more in value. So the average American home would value for at least a half a million dollars. I don’t see this a solution, because the people/banks that have got us into this mess, didn’t have the financial discipline to begin with, now we want to give them this big of a check?
Who know how much more bad and irresponsible debt the could accrue with 150k.
