Financial Expert Says Government Bailout Will Not Turn the Economy Around; Offers Dynamic Solution
Contact: Robert Yetman, Premier Financial Communications, 407-719-7255
DAYTONA BEACH, Fl., Sept. 23 /Christian Newswire/ -- James L. Paris, author of more than 20 books and the Editor-In-Chief of www.ChristianMoney.com, says he is doubtful that the government bailout by itself will turn the economy around in any meaningful way. "Simply put, the key to saving this economy is the providing of fundamental support to currently-sagging real estate prices; this plan does not address that root problem," said Paris. Paris believes that home prices will continue to remain depressed and possibly go lower due to the lack of buyers. Paris said on Tuesday, "While home prices have finally fallen to very attractive levels in many parts of the United States, the problem we have now is the constrained credit market. People cannot buy homes because they can't get financing - there's just not enough money to lend. Until we initiate a plan that stimulates investment in the real estate sector, we will be doing no more than treading water." Paris believes that the $700 billion bailout figure the government is suggesting is not the entire story, and that the amount of money needed to buy up all of the troubled mortgage paper may exceed 2 trillion dollars...and this is before any real money begins pouring into real estate again, which Paris says is the key to making effective inroads here. "It makes no sense to me for the government to take on a massive bailout such as this without addressing the issue of the languishing real estate market," says Paris.
Paris has proposed his own plan to right America's economic ship that would tap into the roughly $17 trillion currently tied up in US pension and retirement plans. Paris announced his plan last week and launched the site www.savetheeconomy.us, wherein he outlined the details. Under his plan, the government would allow individuals to access their retirement accounts without any penalties or taxes if they used the money to purchase residential real estate for either primary or investment use. "This is a no-brainer source of funds that people without other savings could access in order to meet the higher down payment requirements that are now required by lenders. In fact, untold numbers of retirement account holders have enough in their plans to pay cash for a home or two, which would really take pressure off of credit markets. These plans are just too great a source of potential real estate money to be ignored as a possible solution," says Paris.