Bail out should have gone to us
That's what I said when I first heard of the bailout proposal... to give the backbone of the country, the workers and consumers, the propensity to pay: such as their mortgages; credit card debts, etc.... to purchase goods and services, thus stimulating the economy and providing banks with a cash flow to trade themselves out of trouble if they were good enough.
The US Gov't cocked this one up big time and threw good money after bad... giving the safe crackers the combination to the vault and making a worse situation deplorable. I read today that Germany, France and Britain have declared that they are in recession due to the US financial collapse, and that is far from the end of it. Things will get a lot worse before they get better, but for that to happen, governments and economists need to learn that stock markets (primarily) and banks should not be the primary focus of any economy.
It's said that money makes money, and to some extent that may be true, but investment in stock and shares is creating artificial wealth in intangible assets, electronic monies that ebb and flow, often with devastating results as market fluctuations leave many investors penniless.
No, hard work and productivity, the provision of goods and services is what makes money, and when the workforce gets a fair day's pay for a fair day's work, it has the greater propensity to pay, thus stimulating the economy in real terms with actual cash transactions. And to stop the outsourcing of jobs overseas would also stimulate employment, meaning more people with a fair day's pay have the propensity to pay, given that prices are fair, thus stimulating supply and demand, the economy in general.
Sounds so simple, doesn't it! Well it is that simple... well it was, until greed complicated matters with more and more ways to turn a profit at the expense of competitors, and more importantly, we the consumers.