I was watching Glen Beck TV or GBTV online and a reporter was sent into the Wall Street protests to interview people.
One person said debt was one of the problems for the crisis and it should be eliminated to which the reporter said “if there was no access to debt then no one could buy a house”.
What a powerful statement and how wrong the reporter was because if no one could get access to debt then the price of a house would be a lot lower and more affordable.
If no one were in debt people would not need more money to live.
The government or the taxpayer is bailing out the wrong people they have decided to bail out businesses to the tune of trillions of dollars but they never reduced they’re prices to the consumer and the cost of borrowing money on credit cards never came down.
The government should have bailed out the people that had loans that they had a hard time paying back and put the chains back on the lending institution on how they conduct business like they had back in the 1970s where if one charged more than twenty per cent here in Canada it would be considered loan sharking.
The government should put more stringent rules on moneylenders so that people could get out of debt faster.
The government should also put more rules on moneylenders that would make mortgages only available with no renewal terms where one has to renegotiate at five-year intervals it should be for the life of the mortgage.
The government should also make the money lenders offer other types of mortgages like the ones that some smaller banks offer to people that are prohibited from paying interest like some religious groups where they buy a house and a certain amount of units are calculated and a rent is paid and as the units are purchased at a set price then the rent is decreased until all units are purchased and the deed is issued.
We also have to remember the social problems that debt causes like poverty, suicides, domestic violence and more.
With no debt the economy will come back to life and more jobs will start appear because the people will start to spend again.
What do you think?