I've wondered this ... more specifically, what would happen if they simply paid off all mortgages. Yes, some people wouldn't get a piece - but they probably have a child or parent or someone who does. The money would go back to the banks and, as you say, we'd all have a great deal more to spend (without being irresponsible in doing so)

I figured it was just an ignorant, crazy suggestion from someone who knows nothing about finance, but this morning on Morning Joe someone said that if they took the bailout money and did that - paid off mortgages - they would eliminate 90% of the mortgages in the country!!!

So I need educating also, because it makes sense to me!