- As John Kerry used to say, "I have a plan. It's a great plan. It's a stupendous plan. It's a plan I thought of it while making a plan about something altogether different. Which is also a great plan."
- Though we never found out what Kerry's plan exactly was, keep reading for my plan for a $GM bailout
- The government is working with Fannie Mae and Freddie Mac to help bring relief to homeowners facing foreclosure. In order to qualify, borrowers would have to be at least three months behind on their home loans, and would need to owe 90% or more than the home is currently worth. Investors who do not occupy their homes would be excluded, as would borrowers who have filed for bankruptcy. Borrowers would get help in several ways: The interest rate would be reduced so that borrowers would not pay more than 38 percent of their income on housing expenses. Another option is for loans to be extended from 30 years to 40 years, and for some of the principal amount to be deferred interest-free.
- The government is also debating a bailout package for US automakers. $GM is burning through cash as if it were funding the war in Iraq.
- Here's the plan. Why not help homeowners and $GM at the same time? In order to qualify for refinancing, a homeowner would also have to buy a $GM car. Look, the government is reducing your house payment, right? As I noted in the blog entry below, oil prices are waaaaay down and now you have more money to spend because of all the fuel savings.
- What else are you going to do with the money, spend it on lap dances?
- Buy a $GM.
