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Stilgherrian Is Right
1. Lots (not all agree) of families really were never in a position to pay down debt.
2. You assume most people in some industries were going to predict a downturn of this order. Say that again. Did you? And if you did then with Steve Keen and a handful of others only.
3. For lots of people we are talking about income protection insurance is either not available or not a good deal. I assume you are not talking about consumer credit insurance (loan insurance) which is a rip off and typically only covers a month or two's payments.
4. The announced plan doesn't give you any money - just defers your liability to pay. It's not generally the case that you don't remain liable for all interest accruing as well. So it's not getting y ou out of jail and I would be keeping my income protection insurance if it does in fact cover me for unemployment (as opposed to inabilty to work through disability).
Best.
Gordon
G