Bailouts should be Given to the Debt itself, Not the Banks

by Babette fertech@comcast.net
(Chicago)

Instead of bailing out the banks, why not pay down everyone's debt in the country? Pay off mortgages, student loans, medical bills and other debts that are sinking our economy. Each American adult receives X amount of debt payoff. This money will go right into the banks so that they also benefit, but in a positive way. If you were smart enough to stay out of debt, an automatic grant is set up for you with that same X amount of money. If you had some debt but not as much as the X amount, the remaining amount is sent to the grant in your name. Those with enormous debts larger than the X amount at least get some relief. Most of us will be out of debt. The banks receive all kinds of debt payoff they otherwise would not get for years. Everyone benefits.

In addition, the way the stimulus package is set up, no one is policing the enormous flow of cash being handed off to private individuals who head up financial institutions. This is incredible, given that bank CEOs and others who are receiving the stimulus money are often the same ones responsible for making decisions that caused a lot of our financial issues. It's like handing Madoff money to pay off his creditors and saying "Don't go wild now, Bernie. Be careful!" That blasé warning didn't do a thing to ward off would-be crooks in the financial sector. A setup that jails and fines anyone who doesn't comply would be far more effective.