The question many Americans  are asking is why not bail us out?

Which by the way an interesting and dynamic question that should be answered; not poo-pooed.

If the Government paid off individual taxpayers mortgages, car loans and credit cards instead of flushing the money down CitiGroup, AIG and Goldman Sachs (which was really Christmas for President Obama’s ivy league buddies in the hedge fund business) what would have been the economic impact and where  would we be today compared to where we are?

Well from my perspective if my mortgage and other consumer debts were paid off

·         My credit rating would be better

·         I would have a greater borrowing capacity

·         I would  have  more free cash flow on a monthly basis

·         My ability to consume would be greater

So where would have the money went by paying off my debt obligations?  Well GMAC would get a huge prepay on my mortgage and Bank of America and Wells Fargo would have more money to loan because all of my consumer credit would be paid off. 

Yep, the money would have gone directly to the credit providers like it did, but instead of doubling up my obligations (what I owe and now what us taxpayers owe) mine would have been paid off, therefore I would only owe what the tax payers owe.

What would have happened with massive prepays on individual  mortgages?  Mortgage interest rates would have  gone?  DOWN would be my guess.  Prices on existing MBS securities?  yep probably up.  What would have happened to GMAC if every car loan was paid off?  Would GM have needed bailout? 

Ask some questions Americans and take the brass ring out of  your noses.