Okay, so first I need to clarify and admit that this is really my darling husband's bailout plan...and it is limited to the credit card banks and automakers. I just thought it was so excellent I had to post it on my blog. 
Bailing out the credit card banks and the big US automakers:
Step 1: Federal government pays off the outstanding debts on all customer credit card accounts and auto loans for the big companies that are requesting bailout money.
Step 2: Citizens whose credit card and/or car loan accounts are paid off by the gov't are given low-interest-rate federal loans for the balance that was paid for them. They no longer owe anything to the CCs or automakers.
Step 3: Citizens pay off their debt directly to the government each month.
Step 4: People who "opt-in" to this program are not allowed to take on any new debt until the federal loan is paid in full --- excluding mortgages, and car loans for those who were not part of the car loan bailout.
Step 5: Everyone is happy. The citizens are paying off their credit card and auto loan debt at a lower rate, without extra fees and penalties, and not able to get into further debilitating debt. The banks and the automakers get their bailout money. The government throws money around like they enjoy doing.
Win-win-win as far as I can see.
My Federal Bailout Proposal
February 7th, 2009 at 11:49 pm
February 7th, 2009 at 11:52 pm 1234050749
February 7th, 2009 at 11:57 pm 1234051028
February 8th, 2009 at 03:53 am 1234065182
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February 8th, 2009 at 05:03 pm 1234112611
February 9th, 2009 at 01:16 am 1234142178
Yes, that is a scary thought! I was actually trying to find out the answer to just that question but couldn't figure out how to find the information.
Lux,
I'm thinking it would be like any other federal loan (like a student loan for instance) where the gov't collects the payments. I already pay the gov't every month for my student loans, so I'd just set up another auto payment from my bank and be golden.
February 9th, 2009 at 03:02 am 1234148558
The banks got a BAILOUT = handout, the auto companies got a LOAN = has to be paid back.
They are NOT the same thing. U G G H H H !!!!!
February 10th, 2009 at 01:48 am 1234230538
The actual government plan whether bailout or loan has nothing to do with the idea I posted here. The beauty of my posted plan is that the companies only get the amount of money that they are legitimately owed by the citizens of the US. Much more palatable in my eyes than either a bailout or a loan.
Sorry if it offended you...I'm guessing you work for the auto industry?