There is plenty of blame to go around.

The professional inside-the-beltway politicians, negligent lenders and derelict borrowers caused the recession. Yet Barack Obama, an inside-the-beltway elected official has hatched a stimulus package that bails out the reckless bankers and irresponsible borrowers, demanding sacrifice only from Americans who opted for a sustainable lifestyle.

The bailout beneficiaries are those whose standard of living wrote checks their resources couldn’t cash.

Shouldn’t it be the other way around? Defaulting on payments has its privileges in the Great Society II: This Time It Will Work, We Promise. 

Perhaps the empty suits in Washington whose cushy government jobs have them so far detached from the private sector should take the advice of an expert whose success in his field is unprecedented.

As Grandmaster sports handicapper I’ve learned a bit about comeuppance of making bad financial decisions and the rewards of crafting the correct ones. Clearly more qualified than elected officials, here is the framework to turn around the mortgage catastrophe.

Ten years ago, Kenny Appleseed wanted to buy a house. By objective and rationale metrics, he should have qualified for a $200,000 mortgage. But because of greedy, predatory lenders the Appleseeds, against their will, were bamboozled and coerced into undertaking a $350,000 mortgage.

While fair reparations to the Appleseed family for steamrolling them to live above their means can never be achieved, this plan will undo the destruction of the predatory lender.

Washington can purchase the Appleseeds‘ mortgage, allowing Kenny to get back the principal he paid and put it towards a down payment on the $200,000 house he should have obtained in the first place.

Now Kenny has acquired a loan he can honor.

Finally.

What to do with the $350,000 house the government bought? John Smith 10 years ago could have qualified for a $425,000 loan if he fell prey to the bloodthirsty banker. However Smitty thought leeway to be wiser than luxury, only acquiring a $300,000 loan. He has made every payment in a timely fashion and has an impeccable credit rating.

Think about this for a minute. It sounds crazy, but in order to stimulate the economy, how about Washington undertake something radical and bestow the wealth to the populace who have a history of proving they know how to bankroll and invest wisely?

“Militant” the defaulters will bemoan.

Obama and Congress should be ecstatic help documented trustworthy, sound-investing John sell his $300,000 house and give him a low-interest loan to upsize. Stimulation we can believe in.

Perhaps pragmatic and responsible Smith prefers not to relocate, but instead make home improvements. His sterling resume of timely payback should qualify him for a very low interest loan to make those upgrades that will stimulate jobs—real jobs, real stimulus.

Some will assert rewarding people who have demonstrated to be accountable while showing the irresponsible that there are consequences seems too far-fetched. Logic proves it would work. Then again, if politicians mastered logic, they’d work in the private sector.

Imagine, those who pay on time upsize and those who couldn’t would have to downsize, yet still living the so-called American Dream.

A question asked at the Presidential debates was “What sacrifices will you ask Americans to make?” President Duffy would start with those who have lived above their means. It seems those who have lived within their means have already surrendered enough. It’s the capricious ones turn.

We sports handicappers know that successful teams put the ball in the hands of their proven players.  Mr. Obama seems to insist that giving the benchwarmers the ball is the way out of the solution. It was the cause, Mr. President.

The author Joe Duffy is the top broker for those who no longer gamble in the stock market, but invest in the sports market. He is CEO of OffshoreInsiders.com and can be reached at joeduffy@joeduffy.net