Why Financial Bailouts in the U.S. Will Not Work!
posted November 25, 2008 - 2:54pmAs the United States Government unloads billions of dollars into the banking industry, the American economy continues to spiral downward. It really doesn't take a rocket scientist to figure out why.
The banks supply money for credit. Consumers (that's you and I) spend the money. If consumers don't have the money in their pockets they are not going to spend it ... period!
Think back about how the banks and stock market tumbled. Consumers were earning money. Banks knew it and offered them more credit than they could afford. Consumers spent money they didn't have (and the banks knew it) and the American consumer foreclosed and filed for bankruptcy. The banks had too much of their assests tied into promisary notes and not enough cold hard cash.
So; how do we stimulate a struggling economy? Do we accomplish that by giving the banks more money? What does that do? The answer is nothing. The economy runs on the backs of consumers. If one wants to stimule a free market economy, one must ensure the people who spend money have the money to spend. We don't need more credit. We need real money.
That means we must have decent paying jobs and not be investing our money into the government in the form of taxes. The astronomical bailout of the banks will ensure that Americans will not be spending their money at Target or Walmart.
We will be giving it to Uncle Sam in the form of taxes. Someone has to pay for those billions handed out to the same incompetent people who got us here in the first place.
So; my fellow Americans, open your wallets because you're going to be dishing out a good portion of your income to Uncle Sam.
Mmmm... maybe this is a good time to become unemployed. Free medical care ... no taxes ... Yeah; let's have those stinking rich people pay our way into society.

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I'm not sure I agree with the bailouts
Good Points
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