Why I'm Anti Government Bailouts

As we headed into recession during our recent economic crisis several banks went "bankrupt" and had to close their doors. The economy was so bad that many large banks and corporations needed government loans to help stave off financial failure. Here's a list. 

Adding to the crisis were looming balloon mortage payments for millions of Americans. For decades financial institutions offered risky loans to marginally qualified individuals seeking to purchase a home. Because of the balloon payments and the economic crisis many of these homeowners lost their homes. Short sales and foreclosures abounded; Freddie Mac and Fannie Mae tottered.

Then the government thought they should do something to help stave off the economic disaster. So, what did they do? They helped the banks and other corporations and let the small-time homeowners to flounder by themselves.

Part of the money given to the banks was to be invested in new loans to prop up businesses and to foster new growth. Some of the money could have been used to give relief to the beleaguered homeowners. What did the banks do? They deposited the money in their vaults and sat on it.

The banks used the government's money to earn interest so that they could get out of the red. Then they paid back the loans to the government without ever using the money to benefit anyone but themselves.

So, the banks are fine, but business still is slow to recover, and the creation of new jobs is even slower. What about the homeowners facing foreclosure? Only several months later did anyone in Washington try to help them out.

Now, the goverenment could have taken a completely different approach in the beginning of the crisis. The government could have given the money to the beleaguered homeowners, who then would have paid their mortages to the banks, thus, stemming the bleeding by the top financial institutions.

But, once again, our government "of the people, by the people, and FOR the people" caters to the rich and powerful at the expense of the average worker.

And, that's why I am against Government Bailouts