Monday, October 27, 2008

Bailout or copout

In my opin, the bail out was a terrible idea. The reason is, the banks don't learn anything and the freemarket is proven not to work especially when the banks can just depend on government to bail them out in times of trouble.

Banks should have eaten it. If not the bailout, then what should happen you ask?

It would have been better if the government just formed it's own bank, and appointing leading bankers to run it. And the government could lend as AIG lent, there is nothing in the rules that say AIG has to be the lenders. When the rules of the financial markets break, it's time to create different ones, stricter ones.

The second measure that should have happened is that: on homes with mortgages worth less than $250, 000, the government could pay the dept of people that don't have a job to cover, and buy the loan from the bank at 20% less of the cost of the mortgage. It's up to the banks if they want to sell it, and not touch homes worth more than that. This would have been good for the middle class, and helped the American people tremendously.

Since I don't fall into any of these categories, I am not really biased on the topic of getting free mortgage payments.

Next, the government should have raised the FDIC to $400, 000 from 100,000. It's pretty sad when we don't account for inflation as time moves forward, this has been a tremendous failure of government policy for the past 30 years.

It is sad we have so many bankers that are crooks, and it would suit me if they were all sent to the poorhouse.