by Robert Bertram

Created on: October 18, 2009   Last Updated: October 20, 2009

Almost all of our current economic woes can be placed squarely on the shoulders of a government trying to micromanage everyone's lives as it is. The banking and the foreclosure crisis are both stemming from the government forcing banks to make risky loans and then rewarding them for doing so.

Remember, if you have any children (and our current government thinks we are children) that if your child does something that could be harmful to themselves or others and you pat him or her on the head and say "Good job kiddo", they will continue that behavior, especially if you told them to do it in the first place.

If our government wants to pump money back into the private sector and solve the housing crisis at the same time then they should remove any blocking regulations to private sector growth and allow citizens to keep and spend there own money as they see fit.

One great way would be to allow people to use their 401k and/or their IRA moneys without tax penalties to be used to pay off, or at least pay down their outstanding mortgage loans this would free up about a trillion dollars of locked up money and instantly make all existing banks solvent again.

The stock market would take a hit at first to be sure. However banks are sure to reinvest a substantial portion of this while also having more capital to lend to businesses wanting to expand. And expand they would as consumers without having to worry about their housing situations would no doubt be willing to start purchasing all the items they have been wanting to buy but have been holding off on.

As the market for cars, televisions, appliances and everything else under the sun grows so will the prosperity of the United States and even though the government will let taxes on the use of this money go at first, a robust economy will grow jobs and increase tax revenue to the government within two years.

I know that not everyone has a 401k or IRA however many middle class and lower middle class people do. And an expanding job market will allow those who do not find the work necessary to allow themselves to pay their mortgages too. Keep in mind I am not suggesting a hand out, the money is already there and belongs to you, you earned it. All I'm saying is let us use our money to bail ourselves out.

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