It is anticipated that part of the Labor Day Obamathon will include a program in which homeowners will automatically be given lower rates on their primary residences which in turn should provide for expendible income to consume products in an effort to uplift our ailing economy.
I have been a proponent of a "mortgage freeze" at 3 per cent or less which now, could coincide with the Fed's mortgage freeze. Many may say this is more socialism, but we need to do something or waste the remainder of the boomer generation's ability to improve their lot before retirement.
The key here is that the rates that we freeze mortgages at are low enough to promote spending such as the Fed 10yr rate at 2.30 percent. The mortgage companies and their investors will still receive a better rate than a CD while helping jump start the economy with private money and not the "treasonous" printing of more Benjamins.
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We are a consuming people, and when we had equity loans we were buying durable goods like washers and dryers and distributing money throughout our community to home improvers. There is no reason not to allow us to consume products which paves the way for manufacturing and service jobs which should then allow us to eat out and enjoy some semblence of the American Dream.
So, before many eschew a program lowering mortgages, lets think about the long run here and get Americans spending and working.
