by N. Owen Holme

Created on: January 28, 2012   Last Updated: April 26, 2012

While it is simpler for the federal government to bail out select lending institutions that were at the root cause of the global economic meltdown, because of deregulation and federal enticements to lend large sums to the insolvent, it has been shown that the lenders continue to operate in a smug fashion by issuing executive bonuses and that the economy, while not completely imploded, has languished because lenders are now refusing to identify growth opportunities inside the United States. Consumers aren't spending and there is a glut of foreclosed property on a receding real estate market.

The business practices of profiting from market sentiment and charging a nominal fee for anything that can be labeled a service is unlikely to change in the near future. Rescuing homeowners who have gotten in over their heads is less unpalatable than propping up the companies that followed profits, lemming-like, until the system wandered over a cliff that wasn't that hard to identify in the first place. The homeowners in most cases were duped by artificial real estate inflation and loan conditions that changed rapidly, in particular, variable rate loans. These were aggressively sold by lenders and were not a consumer driven desire. The lenders should not be absolved so easily with unrestricted use of tax payer money. It is a sad testament that legislators did not incorporate specific use of bail out funds before releasing them to these pillars of economic stability and that oversight whether deliberate or unintended is still a bitter taste for many Americans.

Homeowners should not be treated so lightly, but aid at the level where economic activity is truly driven must be provided. Firstly, participation is voluntary; given the restrictions that should be implemented some will think this proposal draconian, but it attempts to address a need while in the full knowledge that some will try to cheat.

No household with an anticipated combined income, whether single, married or common-law, above $150,000 income, whether taxable or not, is eligible. This allows for job loss when the preceding income year was above this limit, based on current projection and the home loan is underpaid for 60 days. An audit of personal items of the home and its dependents is auctioned or sold to paid against principle; all collectibles, investment accounts, annuities, retirement plans cashed out and paid against principle. A new audit for items and accounts to be conducted annually until the loan

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