Mortgages : Ease refinancing rules for underwater borrowers . Help bankrupt and delinquent borrowers rework their mortgages through principal reductions. Improve the nation’s infrastructure of highways, bridges, etc .... Repair and renovate schools, rehire teachers, police officers and firefighters who have lost their jobs in budget cutbacks

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Chairman of the FED Ben Bernanke, Job Creation and solving the Problems of the American Economy. -

New York Times -
Editorial -
Mr. Bernanke’s Warning -
August 26, 2011 -

Mr. Bernanke’s Warning

Some excerpts :

The problem is that the Fed’s options, basically easing credit by various means, cannot by themselves turn things around. Lower interest rates can help homeowners with equity to refinance, or small businesses with strong sales to borrow cheaply. But they do nothing for underwater homeowners or businesses where sales are poor because of paltry consumer demand.

The real value in Mr. Bernanke’s speech is that he explained what really ails the economy — and made the case for a better fiscal response to address those ills. “Good, proactive housing policies” would speed recovery, he said, as would “putting people back to work.”

If Mr. Bernanke advocated specific policies to achieve those aims, he would be violating the etiquette that requires Fed chairmen to leave fiscal details to Congress.

So allow us. The best, proactive way to revive the housing market is to help bankrupt and delinquent borrowers rework their mortgages through principal reductions. It is also important to ease refinancing rules so underwater borrowers who are current in their payments can trade in their high-rate mortgages for lower-rate loans. The Obama administration is considering new refinancing rules, but mortgage investors are sure to resist.

One of the best ways to put people back to work is to fully reauthorize the highway trust fund, a big job creator and vital source of money for improving the nation’s infrastructure. Job creation also requires that federal funds are made available to repair and renovate schools, and to rehire teachers, police officers and firefighters who have lost their jobs in budget cutbacks.

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