I read an article on line last week which basically argued the following:
America has 40 million ppl over 50, give each $1mil to retire and require they buy 1 new US car and buy a house or pay off their home…40 mil job openings, 40 mil mortgages paid, 40 mil new cars sold, 40 mil retirements saved…financial crisis solved for $40 million, a tiny fraction of the estimated 11 trillion dollars already committed to this ‘recovery.’
…First of all, as ‘Cookville’ points out in his comment below, 40 million people times $1 million dollars is NOT $40 million, but rather $40 trillion, additionally, Obama and the Treasury people are saying that the money is being given to the banks instead of directly to citizens because doing so allows for 8$ in loans for every $1 dollar put in, allowing it to effectivley create 8 times as much “stimulus” via bank loans as it would in the hands of the average consumer. I’m still not clear on how or why this would be true, but it is what they are saying. Would love any further explanation or ideas about what is better than putting money in the hands of the citizens and exactly why?
Filed under: Tennessee | Tagged: AIG, bailout America, bailout funds, bank bailouts, Corporate bailouts, financial crisis solved, global crunch, poverty, TARP funds, unemployment, US financial Crisis |