Consumer spending has come to a grinding halt. Nobody except for fools are spending money on shopping, retail or new cars. Many retailers, car dealers, restaurant chains etc etc are going bankrupt on daily basis and thousands lose their jobs daily. October alone saw a loss of 240000 jobs.
But how can the consumer spend, when there is no job security anywhere? A lot of recent college graduates continue staying unemployed despite high GPA of 3.5 or beyond. A friend of mine who has bachelor in math with 3.5 gpa is unemployed and a second friend with bachelor in finance with 3.7 gpa is unemployed too. And they both are thinking of filing bankruptcy. This is how bad things are.
And the bailout does not improve job market and neither does it address the problem of how to make the consumer spend more. So then how will economy be fixed?
Giving $700 billion to failed companies does not do anything because they will fail again, since consumer spending is very low now. Fannie Mae, AIG again reported billions and billions in losses despite being bailed out. If General Motor is bailed out again after few months it would need second bailout.
Why don’t they get it that bailout is not the answer to the economic crisis?
Dustin
Jo
Cindy
The government spending more than a trillion tax dollars they don’t have didn’t help either.
Jeff
That’s exactly how I was seeing it…
Mathew
It does not help it.
Kathleen
I think it had something to do with business’ being greedy. They screwed over consumers, so then they wouldn’t buy their products, which meant that their stocks dropped.
Jimmy
No it’s because the democrats and Obama lied about what Fannie May and Freddie Mack true status was and ACCORN forcing bankers to except loans they new were not backed by eligible clients.
Greg
Yes. It’s hard to buy products when you have no job.
Charlie
No no no – those two things do not CAUSE an economy to fail, they are merely the end symptoms!
The rest of your thinking is correct. You are right on the money about the bailout. It scares me how gleeful Nancy Pelosi is about spending 300 billion more on bailouts, never giving a thought to the long term consequences (more of the same crooks running businesses). And the libs talk about BUSH favoring big business???? The Dems are leading the push to bail everyone out! The thing is, as you point out, this will do nothing to help the middle class at all.
This is what would have helped the middle class and everything else in the long run: Allow big business (like the big three car manufacturers and American Express) to fail, and have to die or restructure into a more responsible entity.
But under the likes of Pelosi and Obama, they will all be bailed out for irresponsible lending and spending, meanwhile the Dems will be depleting social security and medicare to bail out their buddies. The average homeowner, however, will not be bailed out.
Florence
The bailout destabilizes the economy and is one of the last steps to communist take over. It is being done in conjunction with a government that has been voted in and has made false promises of greener pastures and a socialist form of government, that is considered the last step. This has nothing to do with them trying to make the economy better that is a lie they want us to think. It has to do with globalization of the banks and the elite banks owning the world and controlling the governments and the people whom they do NOT represent. The first step was of course demoralization through teaching socialistic ideology for a generation (meaning 20 years). The cold war ended not because they gave up but because a New World Order was developing and getting solidified, the banks were forming the Euro and have already started a Lisbon Treaty to control all the countries in Europe usurping national governments constitutions with a continental government that does not represent the people. In other words the cold war ended so that we would not be polarized in the idea of fighting off communism and socialism and would grow more accepting of it. Be careful, if we do not stop them many of us could end up dead.
This will explain it better: