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How do you 'simply' bail out millions of homeowners?

• saganus 5y ago
  The government could ask the banks for their list of debtors, and then transfer an amount of money equal to the sum of all debts, on the condition that the banks write off said debtors, no? Not sure what side effects this could cause but it seems possible in principle.
  • ImprobableTruth 5y ago
    Well, normally a bailout doesn't involve just giving people money (the bank bailout was a loan), but you could do that, it'd be a massive cost however. The biggest winners would also be those with terrible loans/those who issued them. Alternatively, you could just give all homeowners a loan instead - but this doesn't change the fundamental issue of subprime mortgages, so it would really just be pumping up the bubble further.
    • saganus 5y ago
      Ah, I see what you mean by "simply". Yeah, I guess there's definitely a ton of side effects depending on which way you go. However, the optics of giving banks more "free" money at the expense of "the people" is not good regardless. I wonder what would happen if the government extends almost-free loans to whoever has a mortgage. I imagine a lot of people would use it to pay it, but probably a ton more would just use it to get a bigger TV, a car or something similar. No way to win either way it seems.
• AussieWog93 5y ago
  >How do you 'simply' bail out millions of homeowners? Simple three step process: - Be the leader of the CCP - Declare that the homeowners will be bailed out - Sit back and watch while your entire society restructures itself to bail out homeowners I'm only half-kidding; this kind of stuff has been done time and time again, side effects be damned.
• naasking 5y ago
  They bailed out people during the pandemic with cheques. Seems pretty straightforward.