by Keith Risman

Created on: November 13, 2008

The solution is simple. Restructure the mortgages that are failing. It fixes the whole towering house of cards. It saves the homes and living space for millions of home owners. it makes good all those bad investments. It saves the insurers and props up the housing market. So why did Obama and McCain just give lip service to this idea?

The "bailout" has focused on giving money to the same people that have led the race into this recession. AIG did not need the money, the families whose mortgages were failing needed the money in the form of restructured mortgages. That would have saved AIG billions, and most of the value of those mortgages. So, why was this not done with our 700 Billion or with the 100 plus billion given to AIG.

I have a theory. I think it was too unpopular to actually help the people that were struggling. They did not have a voice, the investors, the business people, the wealthy people had the voice. They were the ones with their collective rump being bailed out. This has further sunk the assets behind these mortgages into the tank. Some banks have used the money to buy other banks, but in the interest of protecting their own value, they would rather not renegotiate a mortgage. They would rather foreclose and collect the loss from the feds. The bank gets a new bank, a paid off mortgage and the money from the foreclosure. The home owner and the tax payer catch it every way possible.

In the end, the few benefit and the suffering of the economy continues far longer than it would have if no bailout had occurred or if the money was used to help those in need, not those that caused the mess. If you pay a crook after he steals from you, why would you pay him again and expect something different.

Call your Senator, call your congressman and tell them to use the money to help people, not institutions. Tell them to force businesses to use the money for people not their own profiteering. We are all getting raped by government and big business all under the guise of helping the people. Government is leaving the mess while propping up the villains. It is a sad state of affairs. President Elect Obama is about to do the same with the car companies who without fundamental change if how they do business will be riding on government handouts for years to come. Perhaps we should all get a free car.

Unfortunately government is not fixing the problem, only enabing increased greed and excess. We passed a plan that was crafted for an emergency and then we paid the doctor before we treated the patient. At this point the doctor has no interest in treating the patient. He already has his piece of the pie. Call your congressman, your senator, your president, your president elect and demand the patient get treated instead of his quack doctor.

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