Credit Mess

So the US and for that matter the rest of the world is in a giant credit mess. Too bad they cant contact someone like Credit Hurts so that all the debt could be consolidated into one lump payment at a reduced interest rate!

Todays news brings the highlight of the government bailout to $150 billion for AIG Insurance. That is like everyone in America writing a check for $500. I do hope that some of that money goes back to the treasury - I believe that our taxes are high enough already without having to pay for this disaster.

It amazes me that our government is spending so voraciously as if there were no end to the funds. It is now estimated that the US government will need to borrow over $1 trillion. That is: $1,000,000,000,000.00 or for more perspective it is $3,333 for every man, woman and child in the US. So if we add that to the current national debt of $10,622,166,941,631.68 (as of 11/07/2008 according to http://www.publicdebt.treas.gov/ we each owe the US government approximately $38,740.51. The interest every year is over $400 billion. (yep another $1500 or so per year for each of us).

At least overall the interest rate on our national debt is around 5%. But think of what $400 billion could do if we didnt have this debt. What if we could renegotiate the debt to 2.5% and free up $200 billion per year.

We could feed more of the worlds hungry, provide a better education to our children, or enhance our freeways and bridges.

Well I guess you sometimes have to throw good money after bad. And if you are in the US congress you have a pretty good idea of how to do just that.

The rest of us will be contacting Credit Hurts.