Taxpayer money should not be used to bail out the major banks. It is risky and irresponsible to use our taxpayer money in this manner.
Instead, I propose that our government representatives and leaders act to void all subprime loan contracts between the banks and the borrowers, and then mandate that the interest rate of these loans fall back to the rate before the interest rate jump.
The aim of this policy would be to stop the continuing foreclosures of homes due to the higher mortgage payment for these homeowners. Those homeowners that have yet to see their rates jump to the higher rate will continue to stay at that rate. This action would decrease the rate of future foreclosures and provide homeowners the relief they so badly need while still making their mortgage payments, and the banks would also see their financial situation become more stable.
The foreclosure of homes must stop.
The government would set in motion the renegotiation of these loans between the banks and the borrowers with the aim being to provide a more fair deal that benefits both parties. The government would set strict guidelines for these loan agreement negotiations. No extra fees will be charged; there would be only a change of terms on the contract.
Without doubt, many lawyers and affected parties would call foul. But as the saying goes, "Unprecedented times calls for unprecedented measures."
This action would not be without precedent. On March 4, 1933, President Franklin Roosevelt's administration during the Depression voided all contracts between parties that called for payment in gold.
This plan would negate the $700 billion bailout plan.
-- Jess Villagomez, Oxnard