TRILLION DOLLAR MAINSTREET BAILOUT PLAN* ($1,000,000,000,000,)
*actual cost to taxpayers, $60,000,000,000, sixty billion, (cost of Iraq war for X days)
The basic Idea is simple, make Fed Guaranteed short-term loans of $10,000 available to individuals. (about a hundred million of them)
> The rate is 10% per annum and the first year's interest is waived on any money repaid within 1 year.
> Ideally, these loans are intended to be repaid within 1 year and the money used to increase income, decrease expenses, energy usage, or other waste so that there is a lasting net gain after loan is repaid.
>Loans are written with repayment plan of $1000/month beginning payments 1 year from initiation of loan. 2 years interest are included as payments. Payment schedule will be rewritten for new balance on money not repaid after 1 year.
>>>>>>>>>>>Loans will be issued in stages over a 4 year period.<<<<<<<<
STAGE ONE, taxpayers with excellant credit.
This amounts to a gift to America's most solid citizens.
People with AAA credit, whose taxes are paid will be offered, without having to ask , a sort of a "Revolving charge card". The understanding being that the first year's interest on all charges is gratis, IF the bal. is paid in one year. These people could easily get loans at moderate rates, but are smart enough not to. They will spend the money wisely and pay it back before interest begins. I want to see these loans out by Xmas.
STAGE TWO --- PEOPLE WILL HAVE TO APPLY.
Their applications will include the questions "What do you want to do with the money?" and "How will you repay it?"
Loans will be granted based on Quality of application. Applicants denied will be referred to stage 3.
STAGE THREE ---
APPLICANTS MUST COMPLETE TRAINING PRIOR TO APPROVAL
THESE ARE PEOPLE WHO HAVE WEAK FINANCIAL MANAGEMENT SKILLS.
SBA and such offer business and personal financial mgt. courses.
Graduation is a prerequisate for approval for this level of participant.
STAGE FOUR----- Applicants who don't qualify for stage 3
These are the habitual poor.
To lend them $10k would likely do them more harm than good.
They would qualify for $1000 initial loans, knowing full well they are likely to need "second chance" loans as soon as the first loan payments become due. Those payments would be due beginning in one month."Third chance" and "fourth chance" loans would also be available. If they prove themselves responsible by making their payments on time, completing required courses, and submitting an acceptable financial plan, they may qualify for full $10,000 loan.
#1 WHO'S GONNA PAY FOR THIS?
The loan principle ($250,000,000,000. Each dollar will be lent 4 times over 4 years), will be raised by selling T-bills paying 6%+-.
The interest will be paid out of the taxpayers general fund. Please note that this will NOT raise your taxes, other than the usual result of increased income. Yet treasury will increase because of a higher GNP.
#2 WHAT IF I CANNOT REPAY?
Like a student loan, this loan will not be eradicated by bankruptcy. They continue to accumulate interest until the borrower dies. Delinquent borrowers will be contacted by people very experienced in helping people help themselves. And those same people want that money back in the program to help other people. The interest paid will more than cover the debt written off.