Bank failure

Here’s an alternative to the bailout. What if the Fed gave every homeowner six months of mortgage payments? Everyone! That way nobody can say that they’re being punished for being responsible which they would be if the fed paid for only those failing to pay. Every homeowner would get a full mortgage payment for their primary residence for six months.

Or is it more equitable to pay the banks who knowingly packaged up questionable loans and made untold billions on them for their failures? Everyone was pushing loans on anyone who looked for one and in many cases those who weren’t exactly looking.

After all what is democratic about bailing out banks? Of course you could ask yourself what would China do?

Here’s my question, do you think that would fix the economy more or less than the current proposal?

I personally think it would invigorate the economy much more and be cheaper. Just think about all the money people would be spending.

Well, Lehman’s is going Chapter 11, Merrill Lynch was lucky enough to get bought by BofA. Oh, not to forget that Morgan and Goldman are looking at a potential meltdown as well, in desperate need to shore up stable deposits. Oh, right, and AIG looking down the barrel as well.

Well, the good news is, that we’re in the middle of the mess finally. It’s taken it’s time to get around to it, the mess that is. It’s little consolation to the thousands of people who can expect pink slips in the next few weeks, but we are finally here.

How is that the bright side? Well once this finalizes and a few more banks fail or get bought for pennies on the dollar, then and only then can we breath easier. For that my friends will mean that we’re on our way to a true recovery. Not one bolstered and touted by the Fed as the bottom, but the real bottom means there is only one way to go and that will finally be UP!