My Rescue Plan...

I have been giving thought for a few weeks to something of a housing and economic rescue plan...and being one who despises the concept of Bailouts...I have been wanting to suggest this to the McCain campaign...since it would tie in somewhat to the suggested idea of buying troubled mortgages/housing to stabilize prices.

The 2 biggest problems in the housing sector are, declining housing prices (equity), and over-supply (currently 11 months supply of unsold new homes).

Commit $100 Billion dollars specifically to the purchase housing from the available supply and/or where practical foreclosures. Cap the purchase price at the median housing price to prevent over-paying, and to purchase as much of the supply as possible.

What should be done with it all? Take what would end up being a minimum 400-500k units purchased (actually more like 700k units, if purchasing units capped at the median average price of $250,000)...and put to use...how??? Easy!

All acquired housing would be committed to a variety of uses I believe would be acceptable to the vast majority of tax-payers and voters...

1.) Wherever possible due to proximity...provide new housing for use of all active-duty military personel and their immediate qualifying dependants (and demolish old outdated sub-standard housing/barracks etc.). For the duration of their service to the nation.

2.) Provide new housing where practical to those in need who qualify for reasonable programs which in many cases already exist in (sub-standard housing/shelters/nursing homes, etc.)...the veterans, elderly, disabled, homeless, disaster victims, etc.

3.) Provide units to charitable and service type organizations...providing valuable assistance to those who assist others in the nation...with the sole requirement, that these non-governmental organizations would be required to maintain the properties at their use. The Red Cross, Salvation army, etc...and so many more...could be aided.

4.) Some could also be used by government branches/departments if practical based on location, need, etc. (as opposed to renting or building such for government use).

This all accomplishes a lot. It would take over 10% of the excess supply off the market...which would absolutely help stablize prices. It would provide a very practical and acceptable end-use for tax-payer dollars (housing those who serve(d) our country or are in real need).

Another tangible benefit...jobs...in many many cases...the struggling construction industry, could be put to work in what would almost certainly be a need for altering many of these units for new uses...whether military housing, veteran residences, etc.

There is a real consumer/retail benefit also...it would provide stimulus to every business connected to housing...appliances, painters, home furninshings, etc...which is why the housing sector/market as a whole is hugely important to the economy...which means more jobs.

I'm interested in your opinions...but i think we would all support our money which the government is going to spend anyway...going to those who serve our nation.

DB
Chicago