The government should drop everyones interest rates to 4%. Why just new home buyers? Punish the ones that are making their payments?
And how would the Govt force people with money in banks to get less in interest to PAY for this reduction?
Let me translate what you just said, so you understand the consequences of your statement:
“THE GOVT SHOULD TAKE MONEY FROM ONE GROUP OF PEOPLE (people who lent money above 4%) AND GIVE IT TO ANOTHER (people who borrowed above 4%)”
Are you a socialist or a thief? or both? I suspect neither, but are falling down the slippery slope we end up when we start down the ‘bailout’ primrose path. It will always be unfair to bailout one person and no bailout someone else. so the circle gets wider and wider until we realize that the whole concept is flawed and impossible.
It would be the fastest way back up. If you can refi, you can free up monthly cash for stuff. The banks can go scratch if they don’t like it. Sonsoguns are taking billions and daring to cut credit and raise card rates to 24%. What is wrong with this picture. The banks are getting cash at practically -0- and still can’t make money unless they charge 23%. I’d say if we had a real free market, new banks could do well. Lend to good people with spotless credit at good low rates as it should be. Half the existing banks are mortally wounded. They are trying to make up negative profits on volume.
The Money Masters - How International Bankers Gained Control of America
http://video.google.com/videoplay?docid=-515319560256183936&hl=en