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2007 – approx. 138 million individual taxpayers

Amount suggested for bailout $700,000,000,000.00

1) Outlaw ALL version of Adjustable Rate and Balloon type mortgages.  They must all now be Fixed Rate.

2) Companies in Financial Crisis are allowed to fail.  Bad business practices got them where they are and they deserve what they get!

3) Issue a rebate to all individual taxpayers in the amount of $5000.  That is the $700 billion divided by the number of taxpayers.

a) If that person/family is in mortgage trouble then Fannie or Freddie refinance the balance of the loan for 35 years at a fixed rate. 

b) The person/family forfeits the rebate in the amount of what they owe in overdue mortgage debt.  If the amount they are behind is greater than the rebate the balance is added into the amount of the new loan.  If the amount overdue is less then they receive the balance of the rebate.

4) This solution provides for laissez-faire (hand off) economics allowing companies to fail and succeed but puts the money in the hands of the individual consumer.

5) This solution also handles the mortgage crisis by providing fixed rate insured loans through federal groups thereby bolstering the economy by providing relief to the mortgage crisis.