Jan 27th 2011, 19:18:25
Disclaimer: I'm not a banker and have never worked in a bank, so this may be way off base :P
I was trying to go to sleep earlier but instead started thinking about some of our economic problems. Among the problems:
*Credit is tight
*Businesses can't get credit so they don't expand operations and thus don't hire people
*Businesses don't hire so we have high unemployment
*Unemployment means the unemployed can't pay their mortgages
*Banks have to foreclose on the mortgage and get houses worth less and less
*Credit stays tight
So given this, if I'm the manager of a bank I think I'd start a new program. I'd send a letter to everyone close to getting foreclosed on by my bank and say 'If you aren't paying your mortgage because you're unemployed, send me your resume.' Then I'd go to companies that want credit, hand them the stack of resumes, and say 'Sure, I'll give you a loan, and I'll even reduce your rate by a certain percentage for each of these people that you agree to hire.' Companies then get a low-interest loan, a few people that didn't have a job now have one and can restart payments on their mortgage, and the bank makes up for the low-interest loan by receiving payment on once delinquent mortgages. If it catches on and more banks start doing it, home prices could start to rise, banks benefit again, and I have just saved the US economy. Thoughts?
I was trying to go to sleep earlier but instead started thinking about some of our economic problems. Among the problems:
*Credit is tight
*Businesses can't get credit so they don't expand operations and thus don't hire people
*Businesses don't hire so we have high unemployment
*Unemployment means the unemployed can't pay their mortgages
*Banks have to foreclose on the mortgage and get houses worth less and less
*Credit stays tight
So given this, if I'm the manager of a bank I think I'd start a new program. I'd send a letter to everyone close to getting foreclosed on by my bank and say 'If you aren't paying your mortgage because you're unemployed, send me your resume.' Then I'd go to companies that want credit, hand them the stack of resumes, and say 'Sure, I'll give you a loan, and I'll even reduce your rate by a certain percentage for each of these people that you agree to hire.' Companies then get a low-interest loan, a few people that didn't have a job now have one and can restart payments on their mortgage, and the bank makes up for the low-interest loan by receiving payment on once delinquent mortgages. If it catches on and more banks start doing it, home prices could start to rise, banks benefit again, and I have just saved the US economy. Thoughts?