Wednesday, October 5, 2011

Our Turn At A Bailout

A couple of weeks ago, Henry Cuellar asked us for suggestions on how to create jobs.  One reader here suggested forgiving student loan debt.  I think that person was on to something. 
So my immodest proposal is simply this: Individuals and households in the bottom 99 percent who owe debt to any large financial institution that received federal government support during and after the 2008 crisis should see their debt forgiven. That would certainly stimulate the economy, as most people would suddenly find themselves with a great deal more money to spend on iPads (and food, and clothing, and housing, and healthcare). The debt can be forgiven by decree or if the government really wants to it can step in to pay it itself; I don’t much care either way. (Though it’d be nice to see it just wiped off the books, to enrage the banks.)
Of course, something like this would be too bold.  And Congress, and the president for that matter, don't have cajones to see it through.

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