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Tuesday, November 25, 2008

Memo to Congress: Act Now

You report that Barney Frank claims that the economic rests on three legs. He is incorrect, there is a fourth: the towns, cities, and States of America (Memo to Congress: Act Now, Boston Globe, November 18, 2008: A22). Any stimulus package must provide an infusion of funds to these lower levels of government so that they do not lay off employees and contribute to a downward spiral in employment and tax revenues. You imply this in your editorial.

The reluctance of Secretary Paulson to provide direct help to those facing foreclosure is incomprehensible. The best plan is for the government to go into partnership with the embattled home owner and help pay the mortgage. Then both homeowner and government will build up equity in the house which can be realized when the house is ultimately sold with each getting their proportionate share.

If the Secretary is unwilling to take this kind of step -- there are several similar plans around -- then he should be removed from office and replaced by a person more in touch with the urgent needs of Main Street.

Sent to Boston Globe

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