The Bailout – My Two (Hundred Billion) Cents

What I don’t get about this bailout is this: Why waste the money on saving the banks and mortgage lenders ? If the trouble is with foreclosure, i.e. people being unable to meet their payments and obligations, help out those struggling to do so. Is that what McCain now is talking about ?

Call it reverse trickle-through. If the money goes towards making mortgage payments, then those companies failing because their mortgages weren’t generating any money, this should help them. If their troubles were due to other factors, so help them God. I’d rather see Joe Blow get a tax-payer financed check or loan than yet another financial institution. If he blows it, he can’t complain about losing his house and by spending it he’ll help the economy stay afloat. Any money headed towards “financial institutions”… well, we know what usually happens to that.

From Brad DeLong’s Weblog Page:

Question: if the government spend $100B buying dogshit, would that increase dogshit demand from other investors ? How much ? Isn’t dogshit still dogshit, even if some fool is buying it for a short while ?

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