Greenspan’s bailout: cash for homeowners

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

Good morning. Alan Greenspan (pictured at right) is throwing in his two cents, again. Actually, he’s suggesting the government take your two cents -- times many billion -- and throw it to homeowners who can’t pay their mortgages:

‘Alan Greenspan, former chairman of the Federal Reserve, said Sunday that the government should provide direct financial assistance to homeowners who are threatened by foreclosure in the worsening credit crisis.’

More, from NYTimes.com: ‘Two ways to help homeowners directly would be to reduce taxes or to give cash grants similar to those given to disaster victims. ... ‘Cash is available,’ he added, ‘and we should use that in larger amounts, as necessary, to solve the problems of the stress of this.’’

Like Lou Barnes, Greenspan believes the rate freeze for some sub-prime borrowers won’t make much of a difference. Barnes sees it helping roughly 15 families: ‘The plan will save two families in Arizona, another three in California, nine in Florida, and Etta Mae Huntzinger in Topeka.’

But, wow, cash to borrowers. Your thoughts? Comments? Email story tips to peter.viles@latimes.com.
Photo Credit: Reuters