Credibly promising to be irresponsible...since 2004!
It is a brilliant idea for a charity, their reasoning is depressing.
As a solution for the overall household debt problem, this is bound to be inadequate. Still ... it will help SOME people. And I thought conservatives generally approve of private charity?
There are so, SO many things wrong here; where to start? The poison in the stew is the subjunctive "banks were bailed out." No doubt the bail out was requested, but ultimately it was the cronies IN GOVERNMENT who gave the people's money away.This whole scheme is based on the idea that debts can be bought for "pennies on the dollar". Maybe so, but they have to be bad debts first. I'm pretty sure that only a trivial amounts of debt will be retired this way, but let's have some fun by supposing that this thing really gets rolling. What's next? You will know that you can borrow money and then make it into a "bad debt" by the simple expedient of not paying. Then these jubilee jokers will "rescue" you and "poof", no debt. FREE MONEY!The bankers who cannot figure out what's happening are already broke. From then on, people without solid --REALLY solid-- collateral will simply be unable to borrow at all. If that's the world you are seeking, then join these jubilee guys and good luck.
Wait until they get the 1099 for debt forgiveness, and have to pay federal and state income tax on that bad boy. Poof - the rest of their money is gone.
These people may be ignorant/foolish/stupid but there are more credible voices who periodically call for forgiveness on the sovereign debts of various countries. It raises the question Tom brings up; who will make the NEXT loan after they wipe out the LAST loans? Ask them; do you think we should forgive only the outstanding debt of Freedonia, or also the debt they just asked to add? This is moral hazard reductio ad absurdum.
A great example why Economics should be a requirement for high-school graduation. these people are clueless, but with great earnestness. Much money and time will be wasted for nothing.Peter
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