A different option for a bailout

I havn’t heard this option, but perhaps there is another genius around with the same thought process.

The purpose of this whole bailout proposal, is to help people keep their homes, and to mitigate the impact of defaulted loans on the financial markets.

I propose that the super fund, $70 Billion be used to create a new, taxpayer owned bank, run by a special bipartisan group of people with impeccable reputations and banking knowledge.

Let this new bank deal directly with homeowners who are in danger of loosing their homes.

These new bankers will have the power to negotiate new mortgages, based upon lower fixed rates and current market value of real estate.

The New Citizens bank will take precedence over the original bank, and the property will be purchased and refinanced at  current fair interest and purchase prices.

The original banks will be forced to accept the new purchase price, and payout of lower property value.  In the case of homes being worth less than the original banks mortgage investment, the bank  will have to take a loss. Then they will be able to retire the debt off their books.

The new bank will be able to act as a responsible banking institution, and based upon current interest rates and real estate prices, they will be able to turn a profit, and supply a new cash flow benefit to the entire banking system.

The Old institutions will be punished by bad debt, the public will be able to maintain their homes, and the super bank will be able to turn a profit to the Treasury.

Turn a profit for the Government ? Who ever heard about such a radical idea.!!!!

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