A Three-Legged Stool With Three Broken Legs...Housing, Economy & Banks

A Three-Legged Stool With Three Broken Legs...Housing, Economy & Banks.

Most of our country is sitting on a wobbly, three legged stool.

At times the "stool" may appear sturdy, but the cracking legs of the stool have forced its occupant from its perch time and time again. Yet after each slip from the stool, our gov't leaders carefully prop the legs back into place and asks everyone to jump back on.

We need to realize that the three legged stool is broken.

Housing, economy, and banks—the three legs of the stool—each have severe problems, and the relationship among the three impact each other. The cause of our current situation can be argued forever, and may be.

Housing problems are likely to accelerate. Economic activity has no roots or jobs. Bank assets are increasingly turning sour.

Each of the "Big Three" are individually compelling reasons for a fundamentally ugly outlook. The combination of these three issues is "the perfect storm".

We need a solution.

My personal suggestion...Put a 12 month moratorium on foreclosure evictions. Homeowners who are having difficulty paying their mortgage can search for a job, the gov't can work on solutions to the debt and create jobs, banks can concentrate on new fixed-rate loans to qualified borrowers. The housing industry would benefit from the basic supply/demand equation.

It's not perfect...but at least it's an idea.