The current bailout is a scam. It has turned out to be as we feared - a simple giveaway to the banks. They are pocketing the money and not helping homeowners at all.
Here's what I think they should do:
* Make the banks refinance the mortgages to the current value of the house at a reasonable fixed rate.
* Pay the bank the difference between what was owed and what is now owed.
This has the advantages of:
* No waste of money going into the pockets of investors.
* The bank does not lose money and still has a loan that they will make a profit from.
* The homeowner gets to stay in his house and has a mortgage he can afford to pay.
* The minimum amount of tax dollars are paid. Only the amount lost due to the declining prices, no more no less. No enriching the already rich.
