I’ve been saying for some time that the next bail out should be one for the people. The banks still get their money however, but it flows indirectly via payment of a certain amount of household debt. Of course the banks wouldn’t like that; if they can charge over a £100 a month just to pay the interest on a debt, then obviously, the debtor paying back the debt would mean the banks forgoing the interest payments.
If the payment was set at a reasonable level so as not to overheat the economy, this could obviously help foster a certain amount of growth. Those with little means nearly always spend what they have, so freeing someone from such debts could mean extra money to buy needed household items, or an opportunity to save for a more expensive item or a holiday.
Couple this with investing in infrastructure and housing, millions could find work, which means the government will not only spend less on benefits, but receive more in tax payments.
Everybody wins really; the banks might take a certain hit, but would surely benefit from a growing economy in many ways. It just means rich folk, that you may not be as rich, but you’ll certainly still make some money by benefiting from a thriving economy.
Anyways, I’m blabbing on here; for more information read the Telegraph article on the subject: