I heard a theory today that stated "Why don't we just give every household $56000 instead of $700 billion to the banks"? People just don't understand that his problem is not that the country is in debt and people are loosing money. The problem that the banking system is the backbone of this country. Although I would love to have that $56000, here is why that money has to go to the banks instead of us taxpayers.
This country runs on the credit system. Cars, houses, TVs, refrigerators, everything in this country can and are bought using credit cards, store cards, and bank cards. But that is far less important than the real problem...entreprenurehip. Without lending money to the banks there is no way to encourage new investments in brash new technologies or ground breaking companies. Everyone hates to admit when something essentially runs their lives, but we live in a society that is run by banks whether we like it or not.
This "bailout" (which is the worst name ever....can't the Bush administration appoint someone who can sell something to the American public) will save the American economy for about 5 years. After that 5 years, if this country is not moving in a totally different direction I see no reason not to believe that a crisis like this won't happen again.
Friday, September 26, 2008
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