So, while this idea isn't my own - I've heard bits and pieces of it in various places and then put it together independently.

Considering first that the stimulus and other bail-out money that has been given to banks isn't being circulated, either through loans, credit cards or other forms of lending, and considering that the government now basically owns GM and oversees all the business moves they make, and further considering that people still have these massive toxic loans, mortgages and other debt to pay off, I have concluded that the best thing to do would be the following:

First, the Government needs to recoup as much of that bailout and stimulus money from the  banks as they can.  Call in their card and get it all back:  Millions, billions, if not trillions of dollars.  They need to regain control of that capital.

Second, using information gathered from the upcoming census, the Government should determine which people in this country are over the age of 55-60, still part of the workforce or recently laid off or otherwise out of work, and owe mortgages, car payments and credit debt, and just how much of that is part of these "toxic" assets.

Third, take that original money from the banks and give everyone in the above-mentioned bracket the sum of $1,000,000, tax-free.  This program would have caveates, of course:  Everything a recipient owes, be it a mortgage, student loan, credit card, whatever, all debt must be paid off immediately.  Recipients who are still working must retire and take any job benefits they are entitled to while they can still get it.  Recipients can use the remaining money any way they see fit but are cut off from all other government benefits such as medicaid, social security, etc.  Of course, if Obama's health care plan does go through all Americans would be elligible for the public option, and if a truly crippling tragedy befalls a family that wipes out either their savings or a large chunk of this program's money, they can apply for special dispensations to regain their social security or other government benefits.  Recipients are also barred from extensions of credit through any kind of lending agency.  They take the house they have, the car they have, and keep them, and get rid of all their credit cards.

Such a program would be beneficial in several ways:  The money would "trickle up" to the banks.  A number of their toxic assets would be paid off in full, so they can start lending again.  The workforce would be cleared so that younger people who are in desparate need of jobs can get them.  And most importantly, the elders of our nation would be free to do what they want.  They can start up their own businesses with money left over from paying off the debts, or seed a younger man's business opportunity.  They can play the market, start CDs and other savings programs.  They won't be barred entirely from working - perhaps they can teach, write, do all the things they wanted to do in job markets where younger people aren't feeling as much of a crunch.  As far as I can tell, it's a win-win situation the country to institute a program like this.

What do you think?