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Why not just pay off all the mortgages? (Numbers Edited!)

By
Real Estate Broker/Owner with Better Homes and Gardens Real Estate 43° North

(Note: My first post I had the numbers wrong - Blogging too early again!) When you see news story after news story about the stimulus package being debated right now - a little perspective comes to mind. If Housing was truly the issue here, then why not just pay off a portion of every mortgage in America? According to this site, As of 1999 there was about 6 Trillion in Mortgage debt outstanding in the US. I assume it is around 8-9 Trillion today. If we are considering a $900+ Billion stimulus - why not just pay off a portion of the debt? Because it WILL NOT SOLVE THE PROBLEM! Granted, a lot of people are in trouble right now. Job losses, purchasing way too much home, tight credit, over extending - all real issues for people today - but all part of what we call the free market. 

As painful as it is to everyone - trust me I feel it too as a Real Estate Broker - it is part of a cycle to help keep things in balance. The housing bubble is called a bubble because it was not sustainable - it has to burst. These cycles give everyone a chance to make it. If we never had bust cycles then the Haves and the Have Nots would never change. It times like these that new innovations are made, new industries, new ways of thinking. If everyone is fat and happy all the time - no innovation happens!

So - look to the positives right now. Be closer to family and friends. Learn something new. Try something in a different way. The crazy attempts by the government to stop this economic downturn may or may not work - but in the end it's what has to happen. The government needs to try to save us from ourselves. We need to take stock in what is important in our lives. You get one run in this life so make it count. Up or Down, it doesn't truly matter if you stay positive and enjoy life.

As Realtors we know this will pass. It may be painful, and it may seem like it is going on forever, but good times are around the corner! Focus on what you can control and turn CNN off for a while - it makes the day seem better!

 

43 Degrees North Real Estate Logo

A New Direction In Real Estate

Jeff Martel | Broker / Marketing Director
208.327.2103 Voice | 208.327.2104 Fax
http://www.43re.com
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Steve Richman
Genworth Financial - Raleigh, NC

Just a quick FYI - 6,319 Billion is 6.3 Trillion which is 7 times the proposed 900 Billion you speak of.  You say you assume it is 8 or 9 Billion today and I think you meant to say 8 or 9 Trillion.  Just trying to be helpful.

Feb 09, 2009 01:48 AM
Goodbye Active Rain
Out of Real Estate

Jeff, It may not stimulate the economy.  If people can't pay their mortgage, they may not be able handle other debt.  Everyone is already over extended.  Plus it will show a sign of irresponsibility on the homeowners part in turn thinking they can do this over and over and always get bailed out.

Feb 09, 2009 01:48 AM
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

I just keep working and have deciding not to Participate in the Recession !

Feb 09, 2009 01:54 AM
Jeff Martel
Better Homes and Gardens Real Estate 43° North - Eagle, ID

Steve,

Thanks for catching my numbers - I was blogging too early again! I revised my blog - the numbers were never the point and I am trying to illustrate how as big and heavy as everything may seem right now - it is really simple. Be positive, Work hard, and change the things you can control - the rest will just happen!

Feb 09, 2009 02:23 AM
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

Jeff,

You make it sound so simple!  I do keep a positive outlook on the economy; however, my SUB-conscious seems to do overtime at about 2AM every sleep cycle!!!LOL!

Kathy Opatka Re/Max OCAN CITY,MARYLAND

Feb 09, 2009 02:26 AM