Question by I am Real: Do you agree Main Street also need a bailout?
If Greedy Wall Street, the creators of our present economic mess are being bailout by the Government, then it only makes sense for Main Street/Middle Class Taxpayers who will foot the 0 billion to also get some sort of bailout. After all, greedy wall street made millions in all the bad mortgage backed securities, CDOs, derivatives, credit swaps etc thus whether they are bailed out or not, it will still be a win situation for them.
On the hand, hardworking middle class have lost half of their life savings, 401k, have to prolong their retirement years, have to take second jobs to cover their health care cost and tuition for their children...this absolutely doesn't make sense!
For the bailout to work and directly impact the financial system, I propose 1/4th of the 0 billion to be given to main street in these forms:
a) another round of rebate check, so people can buy gifts for their family during the holidays which will raise revenues for retail shops;
b) get two months relief from paying mortgages and rent, so that good citizens who with hard work have not defaulted their mortgage payments will be rewarded and in the end it will help these same mortgage companies that will are trying to bail out to reduce the number of default payments;
c) tax credit for everyone so that families can regain back some of their 401k savings that they've lost on the stock market;
d) 1 year tuition re-reimbursement, zero percent loans for college and graduate schools to encourage people with dead-locked jobs to pursue other careers that can lift them up to upper middle class level and help them compete globally and chase good jobs in China, India and Europe;
e) Relief for people who pay live in States that pay "Vehicle Tax", zero percent auto loans or rebate checks for people to pay their next car insurance.
f) Since the CEO's outrageous salaries will be reduced, it is only fair for that surplus to be used to raise hardworking employees' salary to 7%-10% annually against inflation. The current 3%-5% annual increases is ridiculous especially when few people are given based on office politics while senior management get millions in bonuses, free jet flights, re-reimbursement for the luxurious trips and lunches.
Again, Main Street need a break, even if the 0 bailout is given to Wall Street, they will still squander it and buy more corporate jets, big mansions in cayman island, Bahamas, Hawaii, Bermuda and purchases of islands in Dubai and the Carri beans. Rather , when the money is given to main street, the money will have "IMMEDIATE, DIRECT on our financial system to stimulate the economy since it will be locally used to pay bills, spent on gas and Christmas shopping. Please petition to your local Government Reps so Main Street, the innocent people will also be bailed out!!
From a distressed Citizen looking for sponsorship for graduate school!! Email if you are rich and can help, our beautiful mighty country, America belongs to all of us.
Best answer:
Answer by DKM
What you are suggesting was the attempt with the Bush tax rebate. This rebate resulted in a modest effect. Maybe because it was too little, too late, or maybe because it was just too little. But it showed us that if the rebates are given to people that have enough money to pay taxes, there most likely going to save their money or spend it over a LONG period of time, resulting in minimal effects to the real economy.
But once everybody spends there rebates, there is nothing else unless the economy rebounds. What they should do to when giving people money is force them to pay down there credit cards and what not. But that's no guarantee they won't run them right up again.
But this getting past the real issue, the reason the credit crisis is so bad is because thousands of americans have defaulted on there 250,000 dollar homes + interest. Banks gave money to the american public (those in the real estate industry) for assets that weren't even close to the value of the loan and then these individuals borrowed more money based on this income or in the "false equity" in there homes.
750 billion dollars will pay for over a million 300,000 dollar homes so that banks, law firms, contractors, etc., can start paying there employees again. Atleast the ones that weren't hired as a result of this mass investing of valueless assets.
Sorry for the horrible typing, I'm doing three things at once.
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