I have been amazed at how long is has taken our Congressional leaders to realize that it is the fiscally responsible homeowners that are propping up what’s left of the economy. Their credit is good, they did not buy a home valued at 4x their gross income, they spend moderately and “sustainably”, and their savings provide stability during this crisis.

Well, representation may finally be here, provided the leadership in Washington doesn’t fail again. Some highlights from the latest proposal are:

• To offer all responsible homeowners the option to refinance at 4% (Republican).
• To offer the $7500 (possibly $15k) buyers tax credit to all home buyers, not just first-time buyers (Democrat).
• To reset the payment for those in foreclosure so that it is no more than 31% of gross income (Democrat).

While I am not a fan of bailing out those who bought a home worth more than they could afford (re: the last proposal), I understand that most people do not plan on losing their jobs. This means that while the last proposal bails out gamblers, it also protects those who may have had a recent job loss and are trying to make ends meet. People with families and children who should probably know enough to save but haven’t learned why.

Eugenians know Peter DeFazio is the man to talk to about this. Send your message to Peter through this form if you agree that the bailout should support not only gambling bankers and irresponsible borrowers, but also those who provide stability and financial temperance during this crisis of confidence.

This blog would like to offer a couple of additional proposals:

• The banking executives that led the country down this dark, over-leveraged tunnel should fail. Bonuses should never exist in this environment. Our government cannot afford the perception that it is corrupted by a revolving door that protects those who need no financial protection.
• The banks that deceived shareholders and homeowners regarding the extent of their “off balance sheet” assets should fail. No bailout for the gamblers and liars. The government should replace that liquidity with STRONGER loans to their competitors w/strict rules to protect the borrower. When Lehman brothers failed, it hurt, but what hurt more was not purging the rest when that could have been done within a matter of months.

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