In the long run, America's "One-Year Mortgage Holiday 7 Point Economic Recovery & Jobs Plan" will produce positive revenue for the Treasury, that will help balance the Federal budget! Residential debt makes up about 80% of all mortgage debt, with commercial, farm, and all other miscellaneous mortgage debt representing approximately 20%. Assuming that total mortgage debt is approximately $12 trillion, a national mortgage moratorium would cost the Government approximately $480 billion of interest payments for one year, based on a 4% annual interest payment subsidy, less the interest expense tax deduction, if everyone opted to voluntarily participate, would then be a cost to the US Treasury of approximately $360 billion. By using the unspent portion of the currently appropriated Stimulus and TARP funds, the One Year Mortgage Holiday may not require much additional government spending. This would free up approximately $100 billion monthly for consumers and business over twelve months. This $100 billion monthly economic stimulus would obviously increase even more as it is infused into and circulates through the economy. All of that money will be used toinstantly stimulate the economy, help stabilize businesses, and promote long-term growth creating millions of jobs as well as create more tax revenues for all city, county, state budgets and the US Treasury.
The alternative costs and repercussions of another Great Depression, instigating massive business failures, 15% - 25% unemployment, collapse of the real estate, financial & credit markets with massive bankruptcies would cost much more to our nation's economy and national security.