Musings From the Margin

Passing thoughts from exile.

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Location: Silicon Valley, United States

Wednesday, September 24, 2008

What if Congress gives all that money to Wall Street and we still have a depression? What guarantees do we have that this hasty solution will do what it's touted to do? I mean, the Iraqis were going to greet us with flowers and the Iraq war was going to pay for itself, remember? Somehow there's a disconnect for this Administration between the idea and the act.

Why can't we just bail out the borrowers? Wall Street would get their money, homeowners could keep their houses, problem solved. Right? Because aren't they telling us it's all these bad loans for mortgages? Their solution is to pay off the banks, let them foreclose on homeowners and...what? I don't get it. They seem to want to punish over-extended borrowers, saying they were irresponsible to take on more debt than they could repay. Sure, that was foolish. But was it more foolish than lenders urging them to fudge their figures? There's fault on both sides, but on one side children will be made homeless while on the other side, banks may not get the windfall they seem to think is their due.

We seem poised on the precipice of a worldwide depression. Is it only the actions of the USA that will prevent it? Can we prevent it at this late date, after years of negligent, greedy economic policy? I don't think anybody knows.

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