Congress Can Play A Positive Role In Helping The Foreclosure Tainted Economy
December 18th, 2008
The Congress can play a positive role in helping the foreclosure-tainted economy. The condition is the worst ever since past few decades. It is not understandable why the Congress is dishing out $800 billion to give a kick to consumer borrower when it is the latter habit that has pushed the country into this terrible situation. What has happened should teach the nation and the individuals just the opposite – to save. Fortunately having swallowed the bitter foreclosure pill Americans are learning themselves that it is better to save than to borrow and splurge.
The money for the bailouts is all coming out of the brains of Henry Paulson, the Treasury Secretary and Ben Bernanke the chairperson of the Federal Reserve. The whole gimmick in its entirety will cost the taxpayer about $7 trillion. It will cause horrendous inflation. The ordinary American will suffer from it.
In recent weeks the Fed and Treasury has been involved in hyperactive exercises. They are making ad hoc deals that are doing nothing to change the economic picture. There is no comprehensive well-planned schedule and the whole operation seems to be aimed at averting an immediate crisis. This will not ease the financial crisis or allow for glimmering future hope.
It is painful to sit back following the policy of Laissez Faire and allowing the market to play out its course. Suddenly car sales have dropped and people are opting out of fancy goods. Charitable donations are at an all time low. All these are causing short-term economic hiccups.
The moot question is about how fair has the administration been to those who have been faithful in their mortgage commitments? How are they going to be benefited from these hasty bailouts? Who will protect the responsible taxpayers? Do not they deserve a guarantee?
As a solution it is suggested that some businesses should be allowed to fail. The medicine is tough but effective. The offending players should be cleared from the field to give a chance to the better ones to survive and thrive.
Here the Congress has a big role to play. It should take steps without delay to encourage growth by doing away with capital gain altogether, punish alternative minimum tax, and erase the rules that require withdrawals from the retirement accounts. The latter is forcing seniors to sell in this falling market. Any agency that has outlived its usefulness should be allowed to fade out and die. It is required of Washington to show a high level of leadership and discipline that has been sadly lacking so far.
- Spurt in Sales of Foreclosed Properties
- Foreclosure Climate Changes Spirit of Competition to Cooperation Among Contractors
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
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