Realizing that I’m already lost in a sea of millions of blogs; realizing that once again I’m proposing something that is obviously naïve, this idea actually would work to help save the world economy, if properly implemented.
We know that banks and financial institutions have been “bailed out” in ways that seem unfair to many. We know that much of this happened under the Bush administration, and now President Obama is left holding the bag.
One of the causes of the U.S. (and by extension, world) economic collapse has been the housing bubble; the idea that housing prices could go up indefinitely and everything would be okay with this.
The result of the bubble burst has been banks and financial institutions bloated with what they call “toxic assets.”
Many of these “toxic assets” are foreclosed properties.
These foreclosed properties used to be homes, to families.
What is the result of a glut of foreclosed properties on a geographic environment? There are now large communities filled with foreclosed properties, which drive down the prices of all neighboring houses. So everyone suffers.
The solution is not to float the banks and allow them to continue business as usual.
The solution is to legislate compassion and empathy for families, while allowing banks to turn toxic assets into avenues of recovery – literal avenues.
This could be accomplished by providing tax credits to those banks and financial institutions that donate “toxic asset” foreclosed properties to organizations such as Habitat for Humanity, which would regenerate these properties for people who need homes. This solution would create necessary housing, stimulate new jobs, revitalize housing market values, and relieve economic burdens of banks and financial institutions.
What are we waiting for?
Wednesday, April 8, 2009
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