finance, bail out

Hello I am no financial expert and my question may ...

hello I am no financial expert and my question may verify that. In stead of a $700,000,000,000 bail out, which does not help regular people solve the mortgage pickle they are in. So those mortgages will still fail. Interest rates will still be high and so there will be no movement in the housing market.

Let's say the mortgage interest rate was lowered to 2 or 3% on a fixed mortgage for 2 years. And very tight rules were mandated, to ensure that the borrower could afford to pay the debt. If the borrower still cannot afford mortgage, give them the oppotunity to get into a house that they can afford, and the loss should be shared. After all the banks are equally to blame.

On 3% the banks are still doubling there money in 30 yrs. They get a short term shot in the arm from all the refinancing. But long term they will have less revenue, but that revenue will be alot more secure. The banks will need to streamline and run a transparent, cost affective business. To make the most of thier longterm reduction in profit. The fat cat needs to go on a diet. Feeding the cat more will( bailout) will only cause him to eat more.

Lower interest rates will bring more people onto the bottom of the housing market, that will stimulate activity through out the market.

Most Home owners will have atleast $200.-$1000. a month extra to save or spend. this will also help stimulate the economy.

Bottom line, this maybe the answer or not, maybe other common sense actions can be taken along with this. One thing is for sure The banks and wall street need to be overhauled, told what they can do and cannot do and most all given the oppotunity to learn from thier mistakes.

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