Linux, politics, and other interesting things
Currently we have a huge husing crisis in the US which involves significant political corruption including the federal government preventing state governments from stopping predatory banking practices .
The corrupt plan to solve this is to simply give the banks a lot of taxpayer money, so the banking business model then becomes to do whatever it takes to make a short-term profit and then rely on federal funds for long-term viability. The bank employees who caused the problem by aggressively selling mortgages to people who could never repay them if the housing prices stabilised – let alone if the prices fell.
If the aim is to protect families, then the first requirement is that they not be evicted from their homes. The solution to this is to void the mortgage of anyone resident home owner who purchased a house on the basis of false advice from the bank or who unknowingly entered into a mortgage that any reasonable person who is good at maths can recognise as being impossible for them to repay. The bank would end up with clear title to the property and the ex-homeowner would end up with no debt. Then such properties could be set for a controlled rent for a reasonable period of time (say 5 years). The bank (or it’s creditors) would have the option of renting the property to the ex-mortgagee for a minimum of five years or selling the property to someone else who was willing to do so. Of course the ex-mortgagee (who would not be bankrupt) would have the option of seeking out a new mortgage at reasonable rates and then buying thier home again.
Also to benefit families the rent control period could be extended for as long as they have dependent children.
The losers in this would be the banks and the people who purchased multiple investment properties (the ones who caused all the problems).
Finally what is needed is a cultural shift towards austerity (as described by Juan Enriquez and Jorge Dominguez) .