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Originally Posted by Baraka_Guru
People losing their houses are people not spending money.
But which has a more significant impact? Which is government money better spend, dollar for dollar? I don't the figures nor the algorithms, but I'd say keeping banks afloat has a better effect on the economy than individual homeowners. It might seem cold, but economics is often like that.
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I don't know about that; consumer confidence and consumer spending plays a large role in the U.S. economic system. In theory, Shoring up the middle class by bailing out homeowners would certainly make those people more economically secure, and allow them to spend more of their money. However, I do not think consumer confidence is currently high enough to get people to spend their excess money, especially given the media's influence on consumer confidence.
I would like to see common people keep their homes, but I'm not so naive as to believe that this is done out of the goodness of politicians' hearts; they are politicians, after all.