Why give the money to the lenders? How does this do a d@#n thing for the tax payer?

The Feds want to spend $700 billion to buy up bad mortgages so that these lenders can increase their lending power. Seeing that the revenue for this idiotic plan is our tax dollars, would it not make since to put this money in the control of the tax payers? The people who hold the debt. When you pay off your student loans, auto loans and mortgages, wouldn't the money be returned to the lender anyway? If each tax payer received a credit of $50,000 (not cash in hand) and could mail in a provided form with their payment elections on it would it not be easier than what the feds are doing? It would no doubt be cheaper.

Update:

I never said give it to the taxpayer to spend on junk. An individual would have to fill out a form at their personal bank showing what lenders they would elect for it to go towards. Never to actually have the cash in hand to blow. Either way this not only helps the lender but the barrower. Get the picture yet? Besides most people are failing on their debt because overtaxation has forced industry overseas. When these institutes lent the money these people actually had jobs. On the other hand Fannie Mae has a large division that only caters to those who have little to poor credit. People already known to be high risk. I guess it goes to show that between the Gov. and big lenders where all screwed.

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  • 1 decade ago
    Favorite Answer

    I will answer your question properly, the average Joe & Jane has no say or legal rule & control over money/business/govt by direct valid citizen say so on a daily/weekly legitimate approval or disapproval voting system. This rule & control we need to have.

    We the people would NOT be handing out more corporate welfare for failed trickle-down economics. The existing system of legal citizen income "means" in this structure is designed for the majority to be enslaved and exclude those whom decent.

    We must reverse the roles and enslave business & govt to be our well managed fire at employees whom must go though us to get money. Power to the legal citizen majority in a equally shared manner, NO dominate few or dictators!

    We need NOT and must remove the federal reserve/world banking system/wall street/k-street when bank of/by/for the legal citizens of USA "the existing U.S. Treasury" would work just fine.

    Your now part owner of the local branch bank with a new logo etc! Also when we gain control over money there will NOT be a need for any Taxation cause we will expliot the money NOT our people.

  • Anonymous
    1 decade ago

    Our entire economic structure is at stake here. So you really think that giving this money to the average joe will solve the problem! They will go out and buy a big screen tv and the school loan will not get paid. It is a catch 22 and maybe we should just let everything collapse and start over like in the 1930's!

  • 1 decade ago

    Taxpayers have their money saved and invested throughout these institutions. That's how it does a damn thing for taxpayers.

    You're missing the point. The reason banks are failing is because people are UNABLE to repay their student loans, auto loans, mortgages, etc. They're defaulting, and the banks were counting on that money to make good on their own promises. On a long-enough timeline, it's a zero-sum game.

    Source(s): Don't mistake me for a supporter of bail-outs. I'd rather we not add to the house of cards. But this is the rationale.
  • Anonymous
    1 decade ago

    Actually, it would be better if it was applied toward LOAN FORGIVENESS, and banks had to RAISE THEIR LENDING STANDARDS.

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