I could easily support this
The Steph Mineart Bailout Plan of 2008:
Here’s an idea we all floated around the table at lunch, and Democrats and Republicans all agreed it was great:
Rather than use the $700 billion (or whatever the hell number) to bail out failing banks, why not take that money and pay off the mortgages of every single American who makes under $1 million a year?
THAT would stimulate your economy, right there. If my mortgage were paid off, we would immediately start building a big carriage house/garage with an apartment above it. I’d also buy a Wii.
Heck, with that kind of money I could buy two Wiis, if I could find them.
McGehee »
29 September 2008 · 11:56 am
If our mortgage got paid off under this plan, we’d be able to afford to sell our existing house and get a mortgage to buy a new one — which we’d hopefully get done before the re-stimulated demand for housing drove prices back up.
Mel »
29 September 2008 · 12:50 pm
It’s the math people.
OK, so there is a popular email going around about AIG’s $85 billion bailout and how if we took that $85 billion and gave it to the estimated 200 million tax payers as a dividend of sorts, we’d each get $425,000.
The only problem is, it would actually be $425. See, no zeros. Particularly troubling was the number of people that fell for this email at a company that provides financial services software. It explains a lot.
Any way, back to the $700 billion and the mortgages. I don’t really know how many mortgages are out there for people making less than $1 million a year.
Let’s figure 100 million homes total, some of those are paid for, and some are not owned by millionaires.
Let’s say 30 million homes fall under this plan.
That’d be $23,333 per mortgage. A sizable chunk yes, but payoff? Not in the least.
Remember the math.
(Not as catchy as Remember the Alamo, but it’s all I got.)
CGHill »
29 September 2008 · 1:10 pm
Okay, so I don’t get the second Wii. I’ll survive.
fillyjonk »
29 September 2008 · 1:53 pm
What? someone out there’s promising a Wii in every pot?
(sorry, sorry.)
Tatyana »
29 September 2008 · 6:53 pm
Chaz: “I’ll survive”.
Exactly.
Some commie with a net-name saccovanzetti (yes, really) told me today I’ should not be so calm and proud – as I’ll stand in soup kitchen lines soon.
My response was: I’m one of the people who PROVIDE for people in soup kitchen lines.
CGHill »
29 September 2008 · 7:47 pm
Lynn has done some math of her own, and here’s what she came up with:
Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 649,917 properties during the first quarter… Okay, let’s just play with a few numbers. That number is going to vary from one quarter to the next but because it’s the only number we have let’s round it off to 650,000 and multiply by four. That gives us 2,600,000. Now divide $700 billion by that number and we get (if I’ve entered the right number of zeros; they tend to run together when you have more than 3 or 4) 269,230.77, rounded to the nearest cents.
Okay now, I’m not saying that we should give all those people $269,230.77. I’m just playing with numbers and if I had more numbers I’d play with those. For example, how many people are paying mortgages, the original amount of which was less than $500,000 and how much would they get if the $700 billion was divided among them?
About that time — 1Q 2008 — the stimulus package signed by President Bush temporarily increased conforming loan limits, as follows: the greater of (1) the previously-announced 2008 conforming loan limit ($417,000); or (2) 125% of the area median house price, but no more than 175% of the 2008 conforming loan limit ($729,750, which is 175% of $417,000). (Source.) Some people, I suspect, do have mortgages this daunting.
Mel »
29 September 2008 · 9:12 pm
So, I can haz sekund Wee?
Dwayne "the canoe guy" »
30 September 2008 · 1:18 pm
Wizbangblog has some great numbers on this. Looks like we could pay off every mortgage that had $75,000 of less left on the principle, which ends up being HALF of the mortgages out there.
McGehee »
30 September 2008 · 3:26 pm
Oof. So close.
In fact, so close we might just be under the wire, though I’d have to look into it to be sure.
Not that there’s a chance in Minot, S.D. of this plan ever making it through Congress — not enough ongoing dependency in the recipe.
McGehee »
30 September 2008 · 3:26 pm
…or even Minot, N.D.
McGehee »
30 September 2008 · 3:27 pm
Saskatchewan…?