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Originally Posted by Baraka_Guru
We should be looking at this from the right angle. This isn't about government bailing out bankers or homeowners just because they want to help those in need. It's about what will have the most impact on the economy. You don't let huge banks sink overnight. It not only shakes the faith in the economy, but it is a loss of financial capacity in the marketplace and a loss of many jobs.
Homeowners...the same thing. 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'd have to agree with this one, it's not the government's job to create jobs, it's their job to create an environment where businesses can thrive and help the economy flow. The better purchase from an overall economic standpoint is to help the investment bank that provides liquidity and cash flow to the US Note. If they bailed out homeowners, as a whole, the people would feel happier but if they let the bank fall, then any stocks underwritten by them fall off the wayside, companies depending on financing through them fall, jobs fall, and even more people will lose houses in the echoes that follow.
It's a crappy decision, but made in the right direction for the greater good.
It's just like the conundrum where if it was wartime, and you were a refugee hiding in a house. 12 people are hiding with you when soldiers raid the house. You're in a well covered up area that is not easily found, but a baby starts crying. If the soldiers find the people, everyone dies, including the baby. You can't quiet or comfort the baby to any degree. The question is, do you kill the child so that 12 lives are saved? Another twist would be if the child wasn't yours - would you have any easier time taking one life to save many? It's not an easy choice, but in the end - the alternative is that everyone dies, including the child. Sometimes the people in charge have to make the difficult decisions.