“doing the same thing over and over again and expecting different results.”
There is some great stuff around the web regarding The Bailout, but I wish there were more attention paid to what i think are some root causes of this mess in the first place: Stagnating wages, un/under-employment, increases in fuel costs, food prices, etc.
We bail these firms so they don’t “crash”, yet we do nothing to address the factors that lead us here? Perhaps this isn’t possible. I saw this quote today:
If you catch a cold because you got caught out in the rain, you don’t try to change the weather. You take your lemon tea and an aspirin.
Ok, so if we cannot eliminate greed, speculation, short-sightedness, etc, why not, in this case, circumvent the system and go directly to the individual homeowners? If roughly 80% of the loans are “good paper”, can we not shore up the other 20% (provided they are owner-occupied, to hell with the house flippers) until real estate values catch up with the amount owed? Because, eventually, it will. It has to. Whats the old saying about real estate? “They ain’t making any more of it?”
I realize that there isn’t a palatable choice out there for us as taxpayers. But, surely we can find balance to this situation, and spend the money wisely, expecting a return in time for our children to benefit from this decision instead of having to pay for it.
EDITED TO ADD: Wow. Go read this article. Heres a key quote:
The Treasury Secretary’s authority is limited to $700 billion outstanding at any time. That means he could buy $700 billion — then sell some at a loss — and then buy more to get back to $700 billion. This is a revolving credit line, not a firm upper limit. It’s conceivable the Treasury could buy and sell trillions of dollars under this authority.