The define wrong-headedness, T-Bird...

You apparently are either clueless as to what I proposed or have even less understanding about economics than you did about gettin' into Iraq...

What I proposed was for the US government, if it was going to write some bigass checks, switch from the 30 year failed trickle down (supply side) economics which has gotten US here to trickle up (demand side) economics... Right now we have given the banks about $300B and don't have a clue where it went... I guess that's fine with you??? It was also fine for another guy who thinks like you... His name is Herbert Hoover... He was the guy who almost sunk the US for good with his stubborness (strange adjective...sound familair???) in supply side economics...

What I proposed is somethimg akin to what FDR did... Rememeber him???... He established the Home Mortage Corp which stepped in and took over bad morgages... Given the massive distrust that Hoover created with the banks and folks not wanting their money in the banks he also established the Federail Depositors Insurance Program which still survives to this very day...

But it was FDR's stepping in to assit folks who were about to be forclosed on that really made a huge difference... This is what I have proposed... And here's is why it works... When this money is used to help the working man who is about to be put outta his home where do you think that money goes, T???

Cat got yer tongue???

Well, to goes to the lender, that is where it goes...

(So what, Boberdz???)

Well, if the US were to buy all these mortages from the bottom up (demand side) alot of good things happen:

1. One less family is on the street creating even more burdens of Socail Services...

2. One less property is now vacant which means that property values around it aren't adversely effected...

3. One less property is on the market which means that if we take all the forclosed prioperties and refinance them thru a federal home mortage corp. then it dries up the excess inventory of houses and restores the housing market...

and...

4. The money does make it back up to Wall Street as the feds, in essence, buy back these mortgaes one at a time... That koney will go into banks who will then feel a lot better lending...

But there is more, T...

If all these loans are refinaced thru a federal mortgage corp at 5 ot 6% as payments come in a portion of each will be amortized as either interst or pronciple... I think that part of the interest could be used to shore up Social Security while the rest going to pasy back the initial investment... Of course, all of the principle will go back to pay for the program leaving that portion to cover losses...

Now, T, have at yer hole pokin'... There were lots of hole pokers in 1933, too...

B~