Letters to the Editor

Skip banks, bail out the little guy

In spite of optimistic headlines, lots of seasoned economists and investors worldwide say we are headed for a fairly severe recession and possible economic Armageddon. We are apparently only in the beginning phases of a "slow-motion economic train wreck," and we already see an outrageous level of home repossessions, with many more to follow when the adjustable rate mortgages adjust upward.

Why do banks always get the bailouts? First, they implement the policies that create the situation; then, when it inevitably goes south, they cry to the Fed and the government for a bailout, and they usually get it. Many everyday people will lose their retirement and life savings, their homes, cars, etc., but the banks will get first crack at the bailouts, and bankers and corporate hogs will still live like kings.

Why not bail out the little guys? These adjustable-rate mortgages are just words on paper. Congress should immediately pass a law freezing all mortgages at their current levels, calling these ARMs illegal usury and banning them, and prohibiting eviction and foreclosure as long as people can make these fixed lower payments. If this doesn't stop the abuse, then we should consider having a biblical "Jubilee Year," where debts are forgiven, lands reverted, prisoners released, sins forgiven, etc. Something must give or we will all soon be serfs.

CHARLES MORRISON

Modesto

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