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NeedToUseYou -> RE: 10.4% Unemployment (11/10/2009 10:52:24 PM)
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Well, here's my view on how the economy could/can be saved.
What were the bailouts designed to save?
Answer: Banks, Investors, Selected MegaCorps.
I don't think anyone can with a straight face deny that.
Now, if the objective was to save the little guy. Small, Medium Businesses, working guy, the money would not have been distributed the way it was, thus my reason why it was exclusively designed solely for the benefit of Banks, Investors, and Selected MegaCorps.
The money loaned, granted, or credit risk deferral would have been targeted very simply directly to the Small, Medium Businesses and working guy.
Here's a simple way of doing so, instead of loaning, etc.. to Banks, Megacorps, in order to allow them to buy or maintain control over large sections of the real worth of this country, you'd have simply offered loans from the government directly to US based small and medium sized businesses. As in you'd take the trillions used to prop up the huge failed risky investments, instead of protecting that against collapse, you let it collapse, and you would have instead used those funds to offer couple percent interest loans to businesses the 100% will cycle most of that back into the economy.
In my view the damage would have been done by now. As what does a small business think about? Expanding... What is required to expand, employees, equipment, real estate purchases. Where do employers put there money in the banks. Where do employees spend their money in the local economy.
Where do Megacorps, Investors, and Banks put their money, they put it anywhere that they can get the highest rate of return regardless of all other factors.
Conclusion is giving(loaning at artificially low interest) money to people that are "trapped" into the local economy (US market), in the medium and long term will have a much much better impact than giving preferential treatment to Banks, Investors, and Megacorps, whose interests will invariably lead a large fraction of that money going into overseas investments, facilities, etc...
Here's the problem with the US, we have gotten duped into believing the fate of DOW, is somehow pivotal to the fate of the average joe. It's not, because most of the stock traded in those companies is held by a small percentage of people, and many of those companies produce and employ outside our borders. So, essentially the bailouts, ultimately only served to further hold the system of haves and havenots in place.
Megacorps, Banks, and Most Investors(those of consequence, not your little 401K), do not give to shits about the US, or any country, they care about returns, and there is nothing wrong with that, that is actually what they are legally bound to do, as in work exclusively in the interest of their stockholders. What is the problem, is that we are so delusional as a nation, to think otherwise, and sacrificed huge amounts of capital, and risk, for entities that will not reciprocate. Whereas a policy actually designed to help directly those with a vested direct interest in the US, and local economies, would not, or could not outsource, As in small business.
At this point though as the money has largely been devoted to the worst possible beneficiaries, and the government in its arrogance believes short term public works projects can make up for economically productive activity, there are not as many possibilities to actually help the domestic small, medium businesses.
One thing that could and should be done, is massive tax breaks for Non-Financial Based employers producing their products or Services in the US.
However, the mob is unlikely to see the benefit of US employers that employee US workers, as a worthwhile goal. Instead, only accept giving trillions in subsidized loans and risk transfer to save multi-nationals, and banks.
We are a schizophrenic nation, we say we don't like multi-nationals, we detest risky investments, we value small businesses, and personal initiative, yet all we've done to this point is help those we decry and refuse to do anything real to help those that would actually help us.
It's stupid.
The sky is falling if for no other reason than we are pulling it down.
Question: Who would you help?
A banker/insurer/megacorp CEO, you've never met, who lives in a 10 million dollar house(has several), who made trillion dollar bets that didn't work out.
or
A local business that employs people in your town, shops at stores in your town, buys his car at the towns dealership, pays his property taxes to your county, etc....
In the long term which is more likely to help you the most, regardless of transient dips and spikes of the DOW.
Well, our idiot nation, said the banker,insurer,megacorp is more important to us.
And is it confusing to see why, small, medium, and large business people think this country is fucked, well, its because we are shoving a corncob up our collective ass and complaining there is a corncob up our ass.
So, there are no jobs, no shit, we've only helped the section portions of the economy that produce transient US jobs, and are most likely to outsource.
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