Is debt forgiveness part of any stimulus or bailout proposals?

I’m talking about using government funds to payoff or forgive either mortgage debt or credit card debt.

Seems like I’ve heard talk of doing so either based on flexibility in existing legislation, amending existing legislation or new (stimulus or otherwise) proposals.

I don’t think so… and I certainly hope not. For those of us who have dutifully paid our mortages and credit card bills on time it doesn’t give us much of an incentive to continue doing so.

The details have not been worked out, but proposals may follow the plan used in the IndyMac bailout:

So none of the debt is forgiven, but the terms are modified so that the homeowner could make the payments and avoid foreclosure.

I don’t think anyone is proposing any relief for credit card debt.

Looks like the credit card debt forgiveness proposals are coming from the financial institutions themselves …

http://www.reporternews.com/news/2008/nov/01/banks-asking-for-credit-card-debt-forgiveness/