While not finalized yet, I don’t believe the final product will be Mainstreet bailing out Wallstreet.
It sort of started out that way when the Bush Administration presented it, and that notion has stuck in the minds of many people.
That’s why so many are up in arms right now.
Actually we all are!
This is typical Bush procedure.
We go to WAR half cocked, and then find out it could have been avoided.
Now it what it is, we can’t just pack up and leave, so we have to deal with Bush’s mistakes.
Same thing on this bailout.
It could have been avoided, but now we are stuck between a rock and a hard place.
The bailout is bad, however, the alternative is probably worse.
In the end, this won’t STRICTLY be a Bailout of Wallstreet, but an attempt to rescue Mainstreet and Wallstreet simultaneously.
Yes, it is a shitty situation that could have, and should have been avoided, but I think we have to do it.
In my world, it won’t matter much. Like you say, not everyone is in dire straights, however, this bailout will stop 10,000 forclosures a day, and allow many of them to keep their homes and renegotiate their mortgages.
That WOULD have a huge positive impact on Mainstreet, but you see, you have to bailout Wallstreet too so the money is there to re-work all of these mortgages and have a decent chance of recouping the money.
If you let Wallstreet go down and wait until after the facts to take action, then there will be no chance to recover the 700 billion. We will still have to spend it after the economy is complete TOAST, but it will mainly be like putting a bandaid on butcher knife wound.
Doing it now provides a pretty fair chance that we would get at least 2/3rds of it back.
So, in the interests of the WHOLE, we should reluctantly support this, and MORE IMPORTANTLY, make damn sure they put the regulations in place so this can NEVER happen again.
JMO, of course, and I respect all opposing views since there are no guarantees either way!:sad: