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Today I've read some really good thoughts on what's wrong with the economic stimulus package (from perich in the form of a funny story) and what we should be doing instead (from eyelid).

I wish the media would somehow do its job and inform the general public of how these things actually work, so politicians could have a chance to be supported by their constituencies when they try to do something useful.


( 6 comments — Leave a comment )
Jan. 24th, 2008 09:15 pm (UTC)
Driving home in the car last night, I had a crazy thought - what if banks were limited to collecting 30% of the loan value in interest when lending on homes? So if I buy a $200,000 house, the bank can collect $60,000 in interest. As it stands now, we'll be paying the bank about 110% of the actual loan value as interest - a fact they casually glossed over, but a fact nonetheless. Well, actually, we won't, since we're doubling up the payments, but a standard one-payment-per-month for thirty years situation, that's what happens. It's sick and wrong.
Jan. 24th, 2008 09:42 pm (UTC)
You are assuming that the value of your house isn't going to increase during that 30 years. Conservatively you can expect your house to double in value every 10 years or so. In our case, just a couple blocks from you, the value has almost quadrupled in ten years. The fact that banks are willing to loan out money so we can make gobs of it ourselves amazes me.

Make sure that if you are doubling up your payments that anything extra gets applied to your principal. I have seen too many people paying extra only to have it taken off of the total balance owed.
Jan. 24th, 2008 10:18 pm (UTC)
Good point on the house value. Though a lot of increases in value are due to improvements which cost money themselves, and in any case market conditions can drive house values down as well as up, as we're seeing now.

We aren't precisely doubling up the payments. We're just making them differently, a smaller payment every other week instead of monthly payments, which takes time off the loan. Also we have one 30year mortgage and a smaller 15year mortgage, so in under 15 years we'll have more equity and smaller payments from then on.
Jan. 24th, 2008 09:27 pm (UTC)
perhaps we should be putting "government" in quotes too
Jan. 24th, 2008 10:19 pm (UTC)
Perhaps. I lifted my post title from eyelid's post.
Jan. 25th, 2008 02:58 am (UTC)
Geez, this kind of thing usually only happens in election years. Oh, wait...

"I know! Let's BUY their votes! We'll even use money we borrow from their kids!"

Facts are, there are just 2 political parties in this country: The Stupid Party, and the Evil Party. Sometimes, though, they get together and agree to do something both stupid AND evil. Then they call this "bipartisanship".
( 6 comments — Leave a comment )


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