I opine

Wall Street on the Dole

Posted in economy, ethics, politics by jaeminuf on September 23, 2008

Someone tell me why that $700 billion can’t be put to actually helping out individuals rather than Wall Street.

The Feds will need to create some administrative infrastructure that will handle doling out – yes, I am using the rhetoric of welfare intentionally here – $700 billion to Wall Street. There will be some wrangling over how many cents to each dollar of debt to be acquired. Blah blah blah.

How much more difficult would it be to set aside that money, create the administrative infrastructure by which mortgage owners who are suffering can apply for re-financing from that pot of money? The banks will get their loans back, homeowners would be able to keep their homes (presuming that a majority will be able to afford discounted mortgage rates), and the fed will get its money back over time, and bankruptcy laws wouldn’t need to be changed?

And really, I can’t be the only person who thinks this may be feasible and far preferable than what Paulson, Bernancke, and the Bush administration are demanding, oops, “proposing as necessary to avoid financial meltdown, global economic crisis, a recession, Armageddon (choose your pick).” Other than that this may be impolitic, why can’t this work?

And tell me again, why ought the US Treasury include foreign investors in the bailout? Nevermind why Wall Street can’t pull itself up by its bootstraps.

I’m asking, not being rhetorical. Sarcastic, but not rhetorical.