Some times you have an idea that seems to make sense almost doable but it's just too big and radical of an idea to get your head around. Numbers too big to imagine and the potential for Unforeseen consequences cloud any ability of one mind to see it from different angles or even sub conscience biases that prevent even the most obvious reasons as to why it's the stupidest idea ever.
That being said, I'm throwing this idea out there not so I can defend it but to invite a dialogue even if it ends with someone's comment that makes me say "God that was a stupid idea."
And away we go!
The Federal Government would loan people the money to pay of their debt at the prime rate plus 1% for a 5yr pay off. +2% for 10yr and 3% for 15yr. I just added the option payoffs but hey I might as well go all in.
Now these loans would appear on the Feds books as an asset. Assets that can then be bundled in such a way as to minimize risk and garner a AAA rating, one that is real and not bought like the fraudulent mortgage back securities sold by the banks that brought down the economy.
The government can then take the new Triple A rated "Freedom Backed Securities", maybe that name will get a little Tea Bagger support, and sell them off to Investors.
Ok, so that it. I'd like to hear any thoughts on this Idea. Pros or cons. What the potential numbers might be or what consequences I'm not seeing or even just a good reason why it's the stupidest idea ever.