Over the weekend, Wall Street got a huge bailout from you and I to the tune of 30 billion dollars. We are now proud owners of risky investments from Bear Stearns' mortgage and "other complicated" assets divisions. Once again, responsible hard working citizens are paying for the lavish lifestyles and reckless financial abandon of the upper class.
The middle class and poor get crumbs from measly "bailouts" such as the lackluster sub-prime mortgage assistance program (which despite everyone's protests when it was announced, really only marginally helps a select few) and a check for $600; while the rich get more tangible bailouts to the tune of billions.
The Feds also lowered interest rates for banks this week, but banks don't pass these rate cuts on to consumers. Plus, banks lower their CD and savings rates which hurt responsible people with savings and retirees. So bank margins double, while Americans continue paying high margin bank rates for car loans, mortgages and credit cards. Rate cuts also increase inflation so average Americans are getting doubly hit: no relief on consumer debt, plus paying higher prices for food, oil and other daily expenses.
It's a billionaire bonanza with the middle-class paying to fuel oil companies' record profits (the price of oil right now is not tied to economic fundamentals of supply and demand) and supporting the financial sector's unbounded greed. But, it's time for the oil companies, corporations and banks to take responsibility and clean up their own messes. We need to end the the welfare era for the rich via tax cuts, Halliburton / war "no bid" handouts, oil company gouging and corporate bailouts. Instead the American government needs to lift the middle class with investments in education, job training, health care and economic programs such as small business assistance and tangible mortgage assistance.
These massive tax payer sponsored bailouts are being justified by economists because everyone would hurt if the economy / financial system collapsed. The Bush administration and Fed argue that these bailouts for the financial sectors and corporations (via rate cuts) will trickle down to you and I. But, the economy has already collapsed for many in the middle class and is just getting worse: lack of health care, contracting wages, increasing unemployment and menial "McJobs," social security pending disaster, record debt, foreclosures, etc.
Maybe it's time for America to go through the shorter term economic "fire" and clean out the corruption and greed. America could emerge truly changed with a new responsible corporate structure, honest and humanistic leadership and a cooperative world outlook. Maybe we would even change how money and greed corrupt our political, business, environmental and person domains.