Will it ever come for Wall Street?
Bail out in understandable terms.
Rep. Paul Kanjorski says it well. "The country is sick". The economic crisis is like an infectious disease that will continue to spread until it effects everyone.
So was does that mean? Here is an example.
If General Motors funds dry up and sales can't cover the costs, they can no longer get the backup credit they need when payday comes to cover employee salaries. So when John Smith goes to the grocery store and uses his card at the register, it wont work because his paycheck never made it to his account. Because he doesn't have any money he can't buy goods. He can't pay his mortgage, utility bills, insurance, etc. This starts the ball rolling and doesn't stop unless there is some form of intervention.
Currently there's 14 Trillion dollars in mortgage money out there. 5% is 700 Billion. That's where this figure comes from. I am not convinced this amount will even help the economy. It's like laying a brick down where there really needs to be a dam. Believe me, Wall Street really did it this time and they know it!
If there is a government "intervention" it should not be put back in the same hands that screwed everything up in the first place. I say give the money to the people and let the geniuses at Wall Street come up with a way to dig themselves out of this mess. I know they can reinvest some of the millions they made in profits. When you walk away with 90 million dollars in profits whats a couple million going to hurt?
The money needs to go to the people to stay in their homes. For example, homeowners whose mortage payment was $1,500 a month before their loan arm kicked in are now paying $4,500 a month. There is no way they could ever afford to make this kind of mortgage payment. The bank knew that when they gave them the loan in the first place. But they don't care because by that time the subprimes have been bundled up and sold several times since then and nobody knows who's got it. So, back to the homeowner, they default on the loan, loose their house, and are out on the street. We need to reset the loans with the sky high interest rates back to a workable level thus keeping these folks in their homes paying into the system the original amount of $1,500. The money all these homeowners are sending back to the banks are in the system and keeping the economy flowing. So whats wrong with that? The problem is, the guy holding the bad debt gets screwed. We can't have that so how do we make sure the rich keeps getting richer and maintains their elaborate lifestyle? The government bails them out with our tax dollars that will amount to 500 Trillion when all is said and done and the taxpayer will get nothing except increased taxes, bills, inflation, etc.
Welcome to the land of Capitolism where we privatize profit and socialize debt repayment!!!!