Why would putting money directly into the consumers pocket not work?

Honestly, I think it is to late for this to work...at least in the near future. If another multi hundred billion dollar "bail out" is printed up by the federal reserve, we can all kiss the dollar goodbye.

With this last near $800,000,000,000.00 that we coughed up, why did we, the consumer not get a large amount of money?? It would have made alot more sence in my opinion to put the money in the hands of the consumer so they could pay off alot of these "toxic loans and assets" Say all the 'tax payers' got between $50,000-$100,000. Delinquent credit cards, mortgages, vehicles would have been paid off for the most part. What is the problem now. The banks and other assholes have OUR bail out money and they are holding it and the consumer is still super cautious about spending! And the #ing government owns a good chunk of them now. Where is it going? NO WHERE, the consumer is unemployed and scared to spend a dime. At least the bank CEOs where able to keep a healthy paycheck, that is whats important. ??

I want to hear good reasons why the money would have been worse off in OUR hands. About the only down side I can think of is that the price of things would get jacked up because buisnesses would know that everyone has $50grand in their pocket. But price gouging could have been stemmed to a point.

If they give money to everyone they'll just spend it.

The problem is they'll expect more after that and then more again. It's easier if you just kill off the entire population and start over. It worked once before in Noahs time.

[edit on 7-7-2009 by In nothing we trust]

Double reply

[edit on 8-7-2009 by Tank2/8]

Wouldnt everyone spending it be a good thing? Assume that the majority paid off dept. Dept that was plaguing the banks. Would the consumer not be quicker to continue to spend and keep the flow going?

Let dept get paid off. Force dept to get paid off. Issue checks only good to pay off dept. Then tighten the belt a LITTLE bit on how easy people can go right back into dept. The money that the banks are holding will only last so long. If the consumer is to scared to spend, what good was it?

reply to post by Tank2/8


Yes that would be a good thing actually. The problem is the reverse of what that member stated. The problem is that it may just be saved and not spent or people would just spend down their debt. They don't want to drive peoples total debt down they want people to consume more and they need the money to stay in the US for it to work.

No matter what the money wont stay in the US and its being used instead by banks to spend down their debt. Infrastructure projects that are being approved are not ones that were actually needed as their is too many restrictions on the cash.

It has and will continue to be a failed effort IMO.

I see your point OP, but it isn't cash that makes the economy go round - it's credit.

When they give money to the banks they can make it 9x or 10x more - into the hands THEY want to put it.

If they give it to us, we MAY spend it, but not necessarily what THEY want us to spend it on....(like reducing debt, for example) but when we do "just spend" the money the leverage aspect is much slower and more widely dispersed.

In any case, why do you want to continue this consumption treadmill?

[edit on 7-7-2009 by I Am Spartacus]

reply to post by whoshotJR



I agree, paying off ALL dept would have its own share of consiquences. But there is no way that would happen. As soon as people paid off most of their dept, they would be back to financing cars and home theaters in no time. Just try to control it a bit better. Screen for better credit.

reply to post by I Am Spartacus


The consumption tread mill will never stop. Is it benefiting us that the banks are using our bail out to pay their foreign dept??

Because then the banks wouldn't get paid back what they lost, and still be able to collect the full debt off of you.

It's like getting paid twice, no, it is getting paid twice!

Originally posted by Tank2/8
reply to post by I Am Spartacus

 

The consumption tread mill will never stop. Is it benefiting us that the banks are using our bail out to pay their foreign dept??

The consumption treadmill is borrowing money to pay for crap that you absolutely HAVE to have right now and can't wait until you can afford it (not to mention NEED it), even if you can't - and the fact that you and everyone else do it and accept it is what creates our bubble economies.

And yes, it does HAVE to end.

This debtors world that we created is not that old.

Umm spending money is exactly what drives our economy and creates jobs. Giving money to the poorest people who actually need it and would spend it would stimulate the economy. Giving money to the banks and companies who failed is, was the most stupid idea ever.

Poor people who need cars would have bought a car. Perhaps a GM car? Poor people about to lose their home might pay their bills...

Instead, we financed million dollar bonuses.

I also believe in shared consciousness of the masses.
If the population, the consumer felt less stress, had some of this national and global finacial meltdown off its shoulders because, hey, I got my bills paid, I am going to go buy that boat I can afford and so on. If everyone lived and spent like everything was ok, would that not inturn make everything ok....or at least better????

First, The problem was caused by fake money. More fake money isn't going to help. All it will do is cause higher inflation, devalue the dollar more (I think at last count it was worth about a nickle) and finally, last but not least, MOST AMERICAN ARE STUPID! Just look at the list of items purchased with the $2000 debit cards given for hurricane releif.

Remember this, when TSHTF there will only be a small percentage of Americans willing to fight.....The majority will hide and/or say "Yes Master".

I don't want anything free from the government, for nothing is free. What's the price we are going to have to pay? And please don't tell me it's your money their giving back, you have no money...it's a total smoke and mirror show.

reply to post by breakingdradles


It makes me sick......and angry

Originally posted by Tank2/8

Honestly, I think it is to late for this to work...at least in the near future. If another multi hundred billion dollar "bail out" is printed up by the federal reserve, we can all kiss the dollar goodbye........


.......I want to hear good reasons why the money would have been worse off in OUR hands. About the only down side I can think of is that the price of things would get jacked up because buisnesses would know that everyone has $50grand in their pocket. But price gouging could have been stemmed to a point.

[edit on 7-7-2009 by Tank2/8]

reply to post by ufoptics


^^^ yes, another multi billion dollar money 'print up' would be devistating. I am just angry why it was done like this when we had the chance

reply to post by Tank2/8


to boost the economy they could require the credit card agencies to forgive all debt owed by the public and start at zero again. Sounds to fantastic, yes I know. However just imagine the boost that would give the economy in the short term. While they figure out how to really fix the flawed system or create a new one.

reply to post by warrenb



With as much money as we have given the banks in the last yr, that dam near sounds like a good idea.

When we all have more money, we have more......
Ah screw it, we are doomed.