Friday, September 26, 2008

How to Fix the Mortgage Industry with 700,000,000,000 dollars

If you write it all out, it's more impressive. Like carrying cash instead of using credit.

You can look around in 5 minutes and find all sorts of people trying to stop the 700B giveaway. I'm all for that. Unfortunately, someone needs to fix the industry and you don't see solutions, only complaints.

I went here to do some research on the population of USA. To make the math easy let's say there are 300,000,000 people in the USA. If you divide 700,000,000,000 by 300,000,000 you get about $2333 for every person living in the USA. Unfortunately, that won't fix the mortgage industry and why do those kids need 2 thousand dollars.

The population of everyone paying taxes is a little harder to come by. It says that the population from 0 to 14 is about 60,000,000. That's about 4,000,000 per year. To make things easy we'll say that the population from 0 to 16 (16 year old's can work) is 70,000,000. I think we can safely say that there are 30,000,000 in the population above 16 that don't work or don't pay taxes. So the number of taxpaying Americans is at 200,000,000. That's $3500 per tax payer.

Back in April, the government gave all the low income tax payers a stimulus check. We can see how well that stimulated the economy. And that was mostly $600 per tax payer. The government meddles and he giveth $600 and then he meddles and he taketh away $3500.

You can see the logic there. Last year there were 1.3 million foreclosures. Let's say there are going to be 1.5 million this year. At some point, they should stop. But, for the sake of argument, let's say there are 3 million foreclosures that are wrecking things. 700 billion allows the government to pay about 233 thousand to each family that lost their house to foreclosure. Maybe they are lending money to the wrong people?

For $233 thousand I could buy 2 or 3 pretty nice houses near Fort Worth, TX! Not mansions by any stretch of the imagination, but definitely some place to call home.

This is all assuming that 700 billion is the lucky number. There are probably a million ways that the government could cut back and save a million dollars. That's $1,000,000,000,000! I've changed my mind. They can give away $700,000,000,000 as long as they make the necessary cutbacks to do so.


  1. I hate it when you make sense. It makes my head hurt.

  2. So, I was reading your comment whilst my youngest daughter was forcing me to watch Charlie the Unicorn on youtube. I think you are Charlie.