I had a thought about blending your spending idea with one of my own – if we get the people who can afford to BORROW to BUY INTO A IRISH PEOPLES BOND.
Take me as an example – WITH the banks co-operation – I could DIVERT the PRINCIPAL payment on my mortgage to an IRISH BOND – I could do this for 2 years. That would be EUR24,000 for just me based on paying EUR1,000 in principal every month.
The bond could pay 4% and the banks could lend it to me today for 3.5% with a lien on the bond.
If the government could do this with 300,000 households around the country they could collect EUR7.2BN over 2 years.
Trick on this one is that if you become unemployed you can have the BOND contributions back – it would also give you a cushion while you look for other work.
The banks would generate sales at the less risky end of the market – generating business for the bank, the legal profession would be able to set up and this would get that going in a small way.
There would be no real cash out of the CONSUMERS POCKET – it would have to be limited to people who are geared less than 85% or other criteria.
We could get EU to match EURO for EURO what goes into the bond and it could raise up to EUR15BN.
The bond can proceed can then be used by ME to pay down the principal in my mortgage in 2 or 3 or 4 years time!
We would just be investing in IRELAND!!! We would have to be sure that the IRISH BORROWED to buy the bond if it comes out of cash it would cause further trouble.
David – I am not an economist just a Joe but I don\’t know where the inspiration comes from for good ideas.
We could then invest EUR15BN into the economy!!!! Would that help to get things moving?
(Webmaster note: removed all caps from title)