Wednesday, September 24, 2008

Congressman Jesse L. Jackson interview, takes up idea on dealing with the housing crisis

I was privileged to have Congressman Jesse L. Jackson Jr., on my radio show this morning (Mornings with Ray Hanania) on WJJG 1530 AM radio. Jackson was talking first about his courageous act to reach out to his rivals and foes and apologize and extend a hand of friendship to bridge personal differences and stay focused on the issues not the personality.

During the discussion of how to help those in home mortgage foreclosure, I proposed something I've written before that instead of pumpign $700 Billion in money to save the bigshot corporations, banks and investors, we should help the mortgage home owners who are in foreclosure. One way to do that would be to take their ARM Mortgages and immediately convert all of them into conventional mortgages. Take away the cause of part of the problem, dramatically increasing the interest rate, and instead lower the instead rates and make them permanent mortgages.

Jackson said he was going to take that idea, expand on it and introduce it on the floor of the U.S. Congress befoire the end of the week.

The idea is sound. Stop the foreclosures. Give the people who are losing their homes the help they need. Help them keep their mortgages by converting the ARM to a conventional mortgage. And, even go one step further.

Why not also allow them a six month or 12 month grace period to get back on their feet. Have them only pay the interest on the converted, fixed rate mortgage, and delay the principle or extend the mortgage the extra year.

I know if I had this problem, this would help me as a homeowner.

Listen to the interview by going to

Click here for the direct link to the audio file

-- Ray Hanania

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