Stimulus Plan II To Bring Back Consumer Confidence

This surely looks like it is in the works. Stimulus One didn’t work, so let’s try again? In my opinion, if we feel that we need to put the power of stimulus in the hands of the consumer, which seems ill-fated since the first package didn’t work, then we need to provide the consumer with the tools to help right the ship. The two best ideas I have heard of to date, is first to let the consumer help shore up and fix the bank’s liquidity issues so that they will lend again more freely. This could be done by allowing consumers to buy short-term tax-free certificate of deposits from the banks and let the banks compete on what interest rates they will pay. All of those people who pulled their money out of the stock market need a better place than their mattresses to put the money, so give them 3-6-9-12 month tax-free CDs and when those mature the money made from those CDs will roll back into the consumers pocket and will be money to be spent. Part of the consumer confidence issue right now is that I won’t spend because we don’t know what is going to happen with our ability to make any money from our savings and investments. Bang, go remove that worry. Second, to set everything right with the housing market, the government can offer across the board 4% 30-year fixed mortgage rates. Making the interest rate low enough that those who are upside down can refinance and hold onto their homes and know that they are locked into a 30 year low rate mortgage will go further to return consumer confidence than anything else I know. If we no longer have to worry about the roof over our heads, then we may spend again. And, these should be offered to everyone at all levels. Those with wealth can refinance and that extra monthly money freed up will flow back into the economy to buy a car or take a vacation again. And for sure, the banks and lenders should get leeway to charge up on origination fees, etc. This would be a windfall for consumers, so why not let the banks and lending institutions also gain a bit from this. So, Congress, please consider these ideas. Don’t send another $1500 check out. It will only end up sitting in a pass book savings account to pay for heating or pay down credit card debt. Give the American people what they need, a way to regain their confidence. FYI, these ideas are not nearly as big of an idea as putting America back to work with planned infrastructure improvement projects, but since that is trying to eat the elephant/donkey all at once, let’s make some forward steps while we can to at least get true stimulus.