My first proposal is this - Give all the good, tax paying Americans with good credit ratings a 30 year fixed mortgage at 4% through Fannie Mae or Freddie Mac. This will jump start the entire process and here's why:
It will create jobs by stimulating demand for appraisers, title companies, and other paper pushers.
- It will create a larger tax base because people will be allowed to take cash out if they have x percentage of equity in their homes.
- It will give those people hoarding all their money some extra cash every month due to the interest savings to go by those things they want, not just need, like flat screen TVs, cars, boats, restaurants, movies, etc, this creates jobs.
- It will create jobs because some percentage of those homeowners who take chunks out will be remodelling, painting, upgrading, or expanding.
More ideas tomorrow. Why can't those people in Washington get off their ass and move it. In the words of the Madagascar crew - You've got to move it, move it!