Robert Gentel wrote:
I think if you really want to take the hit the right thing for to advocate is higher taxes and less spending to foot the bill.
I have and do. Initially I supported it just because of the massive debt of the war, but now I just wonder if it is possible to raise them high enough to cover without going so high that you cause other negative consequences. I support raising them regardless, though.
But I like the proposals I've seen to buy up the bad mortgages at 15% below current market prices. I'm all for pushing the real estate to rock bottom as fast as we can or even having a recession.
I think buying up or renegotiating mortgages is actually a really good idea since it helps everyone. I can't for the life of me see why the mortgage companies (I don't think this is a traditional bank issue) haven't already done that, though.
But I don't want banking collapse. That would be a much bigger problem than recession, popped bubbles and even future crushing national debt.
I've been reading about this so much over the last few days that I'm not even really sure what banking is anymore. We're not talking about deposit institutions -- they don't seem to be in trouble, and they are insured anyway. And I'm having trouble picturing a modern day run... we hardly use cash anymore. So many Americans have little or no savings.
I am just really pessimistic that we can fix this in any lasting way. Perhaps I need a drink.