The 700 Billion Dollar Bailout Moral Issue

I am not a financial guru by any means. But I will share my limited knowledge of this situation with those who will listen. The markets are in need of help but what kind?

We have to understand where we are coming from first to understand where we are going. We are coming from a period of time where the lending practices of banks were not as strict and all kinds of loans were given to people who really could not pay it back. On top of that the reality of what was happening was hidden because of the lack of transparency of the banking industry. In other words those that took advantage of the situation really didn't have to see how they were gradually making the situation worse.

Due to the continuing non transparency of the banks most people are still unaware as to how we have gotten to this point. This needs to end and people need to know how money is created and through what general hands it travels and how something like this could happen. This way we as a people can take steps from the root cause and not just bandage it with a $700 billion dollar package.

At this point we are looking at 2 scenarios. 1) Allow the individuals who allowed us to get into this situation in the first place to now reach directly into our pockets and support the same dishonest system in the hopes that it will correct itself. The underlying fundamentals have not changed so we will end up here again. or 2) Bite the bullet and allow the market to do whatever it is going to do. It may survive or it may not. The change may well end up flushing the bad elements out which also means there may be a loss of comfort to a significant portion of society.

This is how it becomes a moral issue. Do we sacrifice even more of our hard earned money out of fear of losing our creature comforts or do we sacrifice our creature comforts now to benefit on the back-end by gaining an even more efficient and beneficial economic system. The creature comforts include easy loans, available restaurants, shops, big screen TVs, and other things we have gotten used to having at our finger tips.

Like the average American if they owe more than they can pay, they often declare bankruptcy. Our system needs to declare bankruptcy and pull back its spending big time. It is not fair to over spend, place the burden on someone else, steal more money, and continue the same unsavory practices doing it all again. Because of fear, the American people will be made out for fools.

We as Americans have lost more freedoms out of fear in the past several years than in our whole history. If this goes through, we will be succumbing to this decision out of fear. With a little knowledge of economics we can determine if the system we are in is beneficial. To help in understanding money, search for simplified definitions of economics and how money is made. Learn about the Federal Reserve and its origins. Please seek to understand while the internet is alive. Who knows when even that opportunity will be limited.