Question for the economists on DU

[ColonelTom]

According to Wikipedia, as of March 2007, there were $1.3 trillion dollars of subprime loans outstanding. As of October 2007, 16% of the subprime loans outstanding were at least 90 days delinquent.

What would happen if our government just paid down a set percentage of all the subprime loans out there, reducing the monthly payments for the individuals who took out those loans to something more manageable?

Would this be a better use of hundreds of billions of our tax dollars, if combined with rules preventing the issuance of further subprime loans?

[WannaJumpMyScooter]

1. No, see helping people is

socialism

helping big banks, well that is, well... not socialism

[uppityperson]

2. Yes, that would be a good idea.

oooo, post page got really weird. let's see if this posts.

[BuyingThyme]

3. How 'bout we issue a new currency with real estate as the standard.

We'll keep the old dollars, but a "real dollar" will be worth 135% of the old dollar.

All qualifying real property (the properties currently in jeopardy) will be kept on the books under the real standard up until the time it is sold, foreclosed, or otherwise negotiated.