But this excessive greed in the Big Financial Industry is
still very prevalent. Thus, it only
makes sense that the US Government takes steps to soften this excessive greed
in the Big Financial Industry, and at the same time, there can be a lot of money
raised that can be used to reduce the US Debt, and help solve the current US
fiscal cliff crisis.
In this light, I make the following recommendation.
For all situations where a Big Financial Institution holds an
underwater home mortgage, it should be assessed a 25% annual Excess Greed Fee
on the difference between the annual interest income received on these
underwater loans versus what the annual interest income received would have
been if the homeowner was permitted to refinance at the current interest rates.
Further, the US Government starts giving Greed-Softening Tax
Incentives to all financial institutions which permit an underwater mortgage
loan to be refinanced at the lower current interest rate.
And lastly, the US Government sets maximum total refinancing
costs which can be charged by the Big Financial Institution when an underwater mortgage
is refinanced to the current lower interest rate.
This one is a four-fer.
First, it is fair, by penalizing Big Financial Institutions which
greedily refuse to permit underwater homeowners from refinancing their mortgage
loans.
Second, it provides both a carrot…..a Greed-Softening Tax
Incentive…..and a stick…..an Excess Greed Fee, which both highly incentivize
Big Financial Institutions to permit underwater homeowners to refinance to the current
lower interest rates.
Third, since this puts much more money in the hands of these
underwater homeowners, this will provide much stimulus to the consumer-driven US
economy.
And fourth, the US Debt is reduced, thereby helping to solve
the current US
fiscal cliff crisis.
