What About Me – I’ve Done My Part Now I Want My Bailout-Stimulus – It Isn’t Fair She Said
I was asked by someone who lives in Michigan if I thought that our government should have bailed out consumers, rather than the big Wall Street Banks? Well, I was taken aback because, actually I don’t think we should have bailed out the consumers, but I also don’t think we should have had to bail out the banks either. So, let’s discuss this and look at this question under more scrutiny.
“Would our US Economy Not Be in Such a Mess If We Had Consumers Been Bailed out Instead of The Wall Street Banks?”
No, I don’t believe so. But I’m not sure it’s an either/or question. You see, the monetary system in the United States is very important, we can’t just let it collapse. Further, it would be my contention that past failures of government regulators and politicians drove some of the unintended consequences which led to the global financial disaster. So, I am not for bailing out the government either.
The suggestion that we should bail out the consumers rather than the banks, may not be the question we should be asking. If we are looking for a blame game, there’s plenty of blame to go around. Under the Bush Administration Treasury Secretary Snow warned Congress of challenges with Freddie and Fannie, so too did Alan Greenspan, and several others.
When Elliot Spitzer took Hank Greenberg out of his own company at AIG, Hank was the founder of this multinational conglomerate, a new president was put in, and he allowed the London office of AIG to continue to write insurance policies sometimes 130% of valuation (stated face value), and insure mortgage bundles, which just happened to be rated Triple A (when they were not). Hank Greenberg would’ve never allowed that to happen.
Countrywide and others were writing mortgages without proof of income, and with no money down. That was insanity, and Alan Greenspan was right when he said I can’t believe that bankers would act that way, it’s not even in their own best interest. But they didn’t hold those mortgages for very long, they were bundled and sold, and then resold like on potatoes. All under the auspice that Freddie and Fannie (one of the biggest lobbyists) backed by the US government as a quasi-government organization would stand behind it all.
Should we bailout groups like that with taxpayer’s money? Especially when they knew or should have known that what they were trading and selling was garbage? Absolutely not, but we couldn’t let our financial system go completely, it would’ve taken down the whole world, if you go to some of the other countries it actually did.
Indeed, if we would have given more than 0 to every American taxpayer, it would’ve boosted the economy temporarily, just like if we continue to give money to the people who are unemployed for over 100 weeks. However at some point just giving out money makes people lazy and we already know that won’t work.
What are your thoughts on this matter? Indeed, all I ask is that you please consider all this.
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank http://www.worldthinktank.net – Lance Winslow believes it’s hard work to write 22,222 articles; http://www.bloggingcontent.net/
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