Please explain . . .

[Anonymous]

Hello,

I watch the news daily and hear about the bailouts of huge cooperations. Would someone please explain how the bailout will help my family who resides on everyday Main Street. Is there someone we can contact to access some of this money or am I kidding myself to think that we can benefit from bailout monies.

Thanks

[Anonymous]

Because so many of us are stakeholders, directly or indirectly, in these institutions. If they fold, our 401ks are damaged, the retirement nest egg that many are already living off is damaged.... and it's not just individuals that are involved. The big banks are part of the "food chain" for many other financial institutions and other small businesses. It would be like a domino affect.

[Anonymous]

Anonymous wrote:Hello,

I watch the news daily and hear about the bailouts of huge cooperations. Would someone please explain how the bailout will help my family who resides on everyday Main Street. Is there someone we can contact to access some of this money or am I kidding myself to think that we can benefit from bailout monies.

Thanks

No, you as an individual can't access this money. What you aren't understanding is that if the government DOESN'T bailout these corporations, the effect on main street would be catastrophic. Small business would go under, there would be rampant unemployment, savings would be completely wiped out (more than they currently are), a great depression would likely ensue, etc. etc. I can't tell you specifically how the bailout will or will not help your individual family, but it will help the greater economy and therefore help people on main street. Things are interconnected. It isn't like bailing out a corporation only helps that specific corporation.

[Anonymous]

This is also why I don't get mad about the people who got bigger mortgages than they could handle. Yeah, I handle my mortgage responsibly and I didn't go for a subprime loan. Good on me. But the problem has gotten so big that, if the people who are going under don't get some help, the rest of us who are doing fine will be hurt badly.

[Anonymous]

So when does it stop? First it was the banks for mortgages, big 3 auto companies. Next up are the banks that issued credit cards ...

There needs to be effective oversight and regulation before any funds are transferred to these hat-in-hand corporations. If not, it's like a heroin-addicted child returning home asking for "help" all the while keeping his drug paraphanelia in his back pocket. The "help" the addict wants is just more money to replenish his habit. Geez, a lot of good it did to give these banks money to lend when all they did was horde it or buy smaller/weaker banks.

The Worst Is Yet to Come

http://executivesuite.blogs.nytimes.com/2008/11/25/the-worst-is-yet-to-come-anonymous-banker-weighs-in-on-the-coming-credit-card-debacle/?em