Meredith Whitney Proposes Stimulus Plan Without Government Spending
Freddie Mac’s Home Equity Loan Initiative Could Inject Trillions Into Economy
According to Fortune, Meredith Whitney known for predicting big money problems, thinks there’s a chance to help the economy without the government spending. In a recent article in the Financial Times, she talked about a plan by Freddie Mac, a big mortgage company. They want to start helping Americans borrow money using their home’s value. This could put a lot of cash into Americans pockets without using taxpayer money.
Whitney thinks Freddie Mac’s plan could add $1 trillion to Americans wallets by summer and $2 trillion by fall. If other big mortgage companies like Fannie Mae join in, it could add up to $3 trillion. This is important because banks aren’t lending as much for home loans as before. Even though home prices have gone up a lot, Americans aren’t borrowing against their homes as they used to. Whitney says this plan could especially help older folks who are struggling to pay for things.
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Economic Caution Persists Amid Potential Stimulus Plan
But some Americans worry about doing this now. Prices for things keep going up, and the economy is acting a bit weird. Even though Americans are buying a lot, prices are going up too fast. Whitney still thinks it’s a good idea because it could help the economy and Americans without making the government owe more money. She thinks it’s a win for everyone involved.