Now Here's an Idea.

History has shown us that our Nation, eventually, meets every crisis with creative new ideas and bold action.

Here is an idea that will reduce the national debt while stimulating the economy, creating jobs and helping banks get their house in order. And yes, it is possible to achieve both.

The Idea: Government encourages home mortgage owners to take advantage of historically low interest rates by refinancing existing mortgages to cut monthly outflows of personal cash. The Government encourages this with a Cash-for-Cash 2011 Tax Credit or, a government direct Grant for the closing costs up to a fixed percent (so banks can’t raise fees to extract the value of the program).

How to pay for it: The mortgage owner would re-pay the grant (or tax credit) over a ten-year period plus a small interest payment.

Protecting against unintended consequences: This program would be limited to the remaining balance on the mortgage. No leveraging up or using it to speculate.

Who wins:

• The homeowner wins: They don’t have to come up with the capital to re-finance and they get lower monthly costs. This gives them more money to spend which drives the economy.
• The Government: We (the government) get lower defaults because people don’t walk away from homes. We get our Grant or Tax Credit back over time, with interest secured by homes with people actually living in them.
• The Banks win: They get fees (fairly priced), and the mortgage now on the books (probably shortly sold) is of higher quality because the payment is lower

There ARE things we can do to navigate this crisis. We need new ideas and clear thinking in lieu of career politicians maneuvering for advantage. If you have ideas, let your elected officials hear them. Push them into thinking about the power of new ideas. When leaders aren’t leading, the population must come forward…..

Shocking?

Here’s a shocking idea for those who think none of the current Republican candidates for U.S. President are likely to beat President Obama in 2012.

How about the retiring Secretary of Defense Bob Gates? Shocking?

Yes, shocking until you see him being interviewed by a somewhat hostile press.

Yes, shocking until you think about Eisenhower defeating Senator Bob Taft for the Republican Presidential nomination in 1952.

Yes, Shocking until you look at the results of Eisenhower’s defeat of Democrat Adali Stevenson in 1952 and being re-elected four years later.

And shocking until you think that IKE negotiated us out of Korea and then went on to get a bunch of roads built that still serve us well today – more or less.

This doesn’t’ suggest that Gates isn’t’ without faults. Perhaps the current politicians don’t like him. But maybe that is an asset. Remember, the Old Guard Republican politicians wanted Taft in 1952 over Eisenhower. IKE was not perceived as a politician. Neither is gates.

Perhaps his personal life won’t stand up to the usual bright lights. We’ll, lets see for sure.

The interviews to-date indicate he is experienced in handling congress on bi-partisan matters. Also he’s a Republican appointed by a Republican and re-appointed by a Democratic president.

So – shocking as the idea may seem, perhaps its worth an objective look, by objective Republicans. After all, maybe what this nation needs right now is to get a shock – or to say in military terms -- a hard kick in the butt.