Alternate Bank Bailout Scheme

Wouldn’t a more functional way to save America, and the American home owners, be to make an arrangement with the banks that the U.S. will—instead of pumping more money into the banks’ vaults and letting them do whatever they want with it—pay the rate adjustments the banks are making in the adjustable loans to the banks directly, on behalf of the homeowners in trouble? This would allow the homeowners to stay put, with the same low interest rates originally offered as teasers. To take it even further, have the U.S. adjust individual home loans downward and subsidize that as well. The banks don’t have to foreclose, they get their money, homeowners stay in their homes, and the U.S. is still pumping out money but with a for certain positive effect. Just a thought for the President.—Lori Saunders