A 5% "Debt Consolidation Act" would save our economy

[StarburstClock]

Just like FDR did in the 1930s by offering 4% government-backed mortgages, a 5% govt loan to individuals covering all of their debts including credit cards, health care debts, mortgages, everything would instantly reduce millions of American's monthly debt payments and put billions of dollars back into the real economy by allowing people to have more money to spend. Having more money to spend would mean more businesses could stay in business, it's that easy.

[scheming daemons]

1. Idea has merit.... but banks would fight against it tooth and nail

They don't want their outstanding loans paid off in full. They are counting on the 25% interest they receive from credit card debt.

[StarburstClock]

2. Correct but...

People are starting to declare bankruptcy in record numbers and banks aren't getting a dime. With the 5% Act, the banks would get full payment and the people would get a guaranteed fixed 5% rate. If banks refused to participate, they could be fined for not obeying the law. It's true that our economy is so corrupt that no one would likely enforce the law so they're would have to be 1000s of govt jobs created to actually enforce the laws.

[The Magistrate]

4. Which Is, Sir, Pretty Much the Definition Of Usury

Bleeding a debtor of interest till the total repaid is many times greater than the amount lent, while the principal lent remains largely un-repaid, with the final step being taking possession of whatever of the debtor may possess to satisfy the amount still 'owed'....

[Bluenorthwest]

3. A great idea

nt

[msongs]

5. yeah but too bad our leadership is opposed to solutions that benefit citizens not corporations nt