I've been giving this a lot of thought recently and I think we need another stimulus if we're gonna get the economy going again.
I'm worried about the large number of jobless and, mostly, the increasing number of Americans who are underwater with their homes.
So, it's time for the Feds to start spending again. But if you find that unpalatable, you're definitely not going to like how I propose they spend your tax dollars this time (not that the last stimulus cost you anything, or the wars in Iraq and Afghanistan for that matter, because all of that was borrowed).
I think it's time Banks started to renegotiate with us the principals left on our mortgages using Government money to write off our mortgage debt.
Here's why. If people have too much negative equity in their properties, then they are going to foreclose regardless of whether they have a job or not. Not much more than a 100k under and you're gonna be tempted to leave the key at the Bank. More foreclosures will depress property prices even further and the cycle continues, with the subsequent effects on the construction industry and everything else.
So American taxpayers. Pay off some of my debt or I'll cost you.