Would someone explain to me how, even why they think this is gonna work?

Answers:0   |   LastUpdateAt:2012-11-06 00:24:31  

Question
Karrie
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How did the government bailout to the finance institutions help the economy? What good does it do to throw money back into these institutions, when people are unable/unwilling to apply for a loan for anything!

I know I'm not a "brainiac", but wouldn't it have made more sense to give that money to the tax payer? Isn't it ultimately the tax payer that effects the economy? If we aren't spending, manufacturing slows down/stops [i.e., the auto industry, the trailer industries]; if we aren't spending because we can't get a loan [i.e., foreclosure, judgments], why give all that money to lending institutions that are not loaning it back out?

Does no one else see the cause and effect here?


You give money to lending institutions that aren't circulating the money; you give money to GM and Ford to produce a product that people can't purchase, because the lending institutions aren't lending...

Help me out here! I'm not looking for a handout. I don't need to be rich, nor do I want to be. All I want is to be able to pay my bills on time, have some tucked back for emergencies, and some available for other necessary expenses. I honestly believe that is what most American people want.

Wouldn't it make more sense to put it out there where it's going to actually stimulate the economy?

Most people I know [myself included] would:

A. Pay their mortgage to current, or pay it off, which would keep people in their homes and stimulate the lending institutions.

B. Pay off any other outstanding debt incurred from this crisis [such as credit card debt], because we couldn't afford to fill the tank plus feed the family.

C. Pay cash for a more economic vehicle, no matter what the price of gas is doing at the time being. We've learned a lesson here. That would have circulated the monies for the auto industries.

I'm not in any way looking for a handout. I, just like all tax payers, am dealing with this crisis the best way I can, which is going without the things I do not need.

I just wish I could understand how the government can justify these bailouts, when, in actuality, it isn't going to be effective one way or the other until the middle class feel comfortable enough to start spending.
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