Goverment giving money to banks? why not look for good people with bad morgages n save them from foreclosure?
Question:
It's easier to dump a billion dollars into one bank to shore up a failing hedge fund than it is to distribute the same amount of money to several hundreds of thousands of homeowners. That's why the Fed will create money out of thin air and invest it in the economy, buying stocks and investing in bond markets, but won't do anything that helps homeowners directly.
Seems a little counterintuitive, right? If the government is going to take taxes to redistribute wealth and prevent a concentration of wealth in few hands, why does it then dump billions of dollars into corporations and companies that make it a goal of accumulating as much wealth as possible? Are taxes just a game played to steal money from the poor and middle classes and give it to big banks and companies?
Either way, the homeowners are going to be left to deal with the foreclosures. Banks will get the bailout and be able to lend to these same homeowners again and again, creating more bubbles that make sure wealth in consolidated in their hands.
You'd think there would be an end to it all some day, as wealth in the form of valuable assets (houses) can not be replaced simply by printing money and pumping it into the economy.
Hope that answers your question, though.
ForeclosureFish
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