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Originally Posted by sugarpop
At least if the money had been directed to people, the toxic debt (which is supposedly what started the dominos falling) could have been paid off
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You misunderestimate the stupidity of your fellow man. The low rates and easy money they had access to for the first part of this decade should have been more than enough to allow them to pay off their debt and be in a relatively good financial place. Instead they used the low rates to buy more stuff. Then they used the low rates to refinance that stuff. Then they used the low rates to take money out so they could afford to pay the payments on the stuff they bought. And then they figured out they couldn't keep up with their snowball and started crying for the rules to change. Giving them more money only allows them to push the painful date of reckoning further down the road but in the end people must face the painful lessons.
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IMO, and granted I am not an economist, but imo, it started with deregulation.
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Deregulation of what? By whom? When?
I'm not suggesting there isn't a problem. I'm not suggesting Wall Street doesn't hold much of the blame. IMO Wall Street, the gov't, and the borrowers all own equal shares of the blame pie. I'm suggesting that your idea of handing money over to John and Joan Q Public doesn't solve anything to a greater degree than bailing out financial firms. It only delays the inevitable and creates a bigger problem for tomorrow.
I don't agree with bailing out the firms but I can't see any sense in going the route you're suggesting either.