Interest alone on the bail-out money would generate $1,414/mo. for every unemployed and homeless

[grahamhgreen]

person in the country.

simply having it generate interest at 6% would provide $1,000 a month for every unemployed and homeless person in the country.

That is 1.65 trillion at 6%, would generate 99 billion a year, divided by 7 million unemployed/homeless.

These people would spend the money and drive the demand that is the basis of our economy.

(can someone check these figures?)

Then we could do another program for college....

[ben_meyers]

1. Check your assumptions first, before your figures.

The Government dosen't have the bailout money sitting around in cash. Since the treasury will have to borrow in the 1st place your will have to calculate the spread to see if your idea will work.

[gravity]

2. The treasury pays real low interest rates right now

A 12 month treasury bill is 1%. A two year note is 1.2%.

Since the only safe asset is treasury securities, everyone is willing to buy them allowing the government to borrow money for nothing

[grahamhgreen]

3. Oops, I think it's $14,000/year at 6%....

[pnwmom]

4. And where would the money come from? And who would pay the 6% interest?

I'd like to find a safe place to earn 6% myself.

[grahamhgreen]

5. From 6% mortages done in the old way - 15, 30 yr fixed only

Although we could possibly introduce 45 yr fixed for the most egregious cases of people about to lose their primary residence.

[dkf]

6. Citi is paying 8% for the latest bailout $.

The earlier recipients are paying 5%.

This is not a gimme, it is a loan.

[grahamhgreen]

7. That's even more $$$! How much of the 1.65 trillion is a loan? And what happens with the interest?

With the interest we could end poverty and hunger and homelessness in America FOREVER!

[dkf]

8. So far all the money that has gone to the banks is a loan to be

paid back in 3 years, with the interest going back to we the people.

If they purchase loans, the key is at what price the purchase is done. If they can be bought at a very good price, we could make money off it. If we pay too much, its like all things that were too expensive...we would be stuck with the loss.

I'm not sure where you are getting the 1.65 trillion amount. If that counts AIG I really don't know how we are supposed to get our money back. I'm not even sure where the $ went.

[marketcrazy1]

9. total cost ( debt of taxpayers )

of this bailout to date including our national debt and future obligations is running north of 303,000 dollars for every man,woman and child in the U.S.!! thats over 1.2 MILLION for a family of 4! think about it!!! this is the amount taxpayers are obligated to payoff (that is our children,grandchildren ), EVENTUALLY!!!

[grahamhgreen]

11. 5% interest on 1.2m is 60 grand a year...

[dkf]

10. The US doesn't have 1.65 trillion lying around.

In order to get the money we are selling our bonds and having to pay interest.

[grahamhgreen]

12. Is there a new 1.65t bond issue?

[dkf]

13. Actually I know that was the original idea with the bad asset purchase plan.

Now that we are just supplying equity I'm not sure how they are funding it. They could be selling bonds or printing $.