The Mortgage Fix That Can Save the Economy | AOL Real Estate

"If lenders would reduce all underwater mortgages to their current market value, the nation's banks could pump $71 billion per year into the economy, create more than 1 million jobs annually and save families up to $6,500 per year on mortgage payments, according to The New Bottom Line"

"The plan projects an annual stimulus of $20.5 billion in California alone, leading to 300,000 new jobs a year created there. A $12 billion stimulus to the economy of Florida would result in almost 180,000 new jobs.

The report says that in 2010, the nation's top six banks paid out more than twice the cost of the plan ($71 billion per year) in bonuses and compensation alone ($146 billion in 2010). And that currently, the country's banks have cash reserves of $1.64 trillion -- a historic high."


I gotta say it does make sense. So far the only ones taking the hit are the people. So it would only seem time for the other half of the equation to chip in. Of course the hard part would be keeping the government from bailing them out of the loses.