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In response to
"this is a terrible idea. you're basically punishing people without debt. -- nm"
by
mafic
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Well that's the thing, but it's the quickest way of turning the on switch on the economy again.
Posted by
Loyola
Oct 18 '10, 16:07
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I don't have a mortgage but I think this is what central banks should do. In any event, both central banks, and private homeowners, are private entities, with no government involvement whatsoever in the transaction. If you take a no money down 100% mortgage in 2005, say it's for 600k, currently priced at 400, Fed gives you 200, that house price will hit the floor fast, you'd sell it right now for 370/380, with the benefit of the lower price it sells for going to a new homeowner who accrues benefit as well as the person getting the 200k.
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