Christ, I am so sick of hearing how the way to solve the economic problem is to give banks money so that they can start lending and get the credit crisis under control. I mean seriously, if that were truly the solution, then things would be getting better, not worse, because of all the money given to banks already. But no, things are declining even more. Why? Well, for one, banks still do not want to lend that money, and two, nobody wants to borrow it.
People are losing their jobs, and if not their jobs then their work hours. Sure, there are jobs out there, but places like McDonald’s, Wendy’s, or supermarkets will not pay the bills. Especially part time. So nodbody want to take out more lonas or credit. And who can blame them? What sense does it make to encourage people to borrow more when already they cannot pay the bills they have? It makes no sense, but that it what is happening. That is Paulson’s big idea on how to fix the economy, and it might work if people had money and confidence in the system, but we don’t.
We need money in our bank accounts–money that is not from some loan or credit card but free debtless money–in order to feel safe about borrowing again. Of course money doesn’t grow on trees, which means that someone would have to give it to us, and since the Federal Government already spent their wad on banks and companies like Citi and AIG, there is no money left for us, exept for borrowed money. And really, who wants to increase their debts so that they can pay off some other debt? Aside from the FED and the Federal Government that ?
I mean, this is seriously stupid and fucked beyond belief; it’s like asking someone for 100 dollars so you can pay them the 100 dollars you already owe them. Sure you pay some of the debt back, but that new 100 dollars still remains, you still owe it, and you have gotten nowhere. And don’t talk to me about how this money could be used to create jobs in the private sector (bailout money lent to businesses so that businesses could create jobs and get things going). Again, it does not matter how many jobs you create, how much of something you produce, if there is no money for it.
If people don’t have money to buy new products, they can’t, and if they can’t the businesses that created the new jobs that created the new product go bankrupt because no one cany afford to pay them to keep making their products. End result: business fails and the jobs that were created are now destroyed. It is a viscious cycle, and a smarter way to stop it would have been to give the population that cash, so they could reduce debt and get money back into the economy. Would it have created a possible inflation problem? Maybe, but right now we are facing deflation, which is just as bad (though I like lower prices) because soon things will become so cheap that they will not be profitable so they will have to stop being made. Inflation is manageable because you can increase interest rates and not lend as much money as before. Then when the inflation rate climbs down to a more reasonable level you can take action to help keep it there.
But no, our government decided that it would be best to give money to large banks and corporations on the hope that they could then lend that money to the smaller people (and of course make a profit at the same time) so those of us who need financial help can be assured that we will never get it and that the division between the rich and the poor stays large and unconquerable. The bailout is nothing more than financial war on the middle and lower classes because we are the ones are suffering right now, and we are the ones who will have to increase our debt to untold amounts just so we can have a place to sleep at night and put food on our tables.
But thank you Mr. Paulson, Barney Frank, President Elect Obama, Senator McCain, President Bush, Nancy Pelosi and others. Thank you for voting for this bill and giving a big middle finger to those of us that live on “Main street” and you claim to care so much about. If it were true that you cared about us, you would have (and be taking) viable and smart steps to keep money in our pockets because even though we don’t have any money, we are still the largerest portion of the population and we do most of the purchasing in this country. So thank you again for making it more and more difficult for us to make purchases without having to increase our debt. You really showed that you care more about “Main Street” than you do “Wall Street.” Really. Good job.