More Thoughts...Same Subject

     Despite the posts opposing the government bailout plan (now called rescue plan) it has been approved and is currently in effect.  Before speculating on its progress resuscitating the economy I wish to address the overwhelming responses against government intervention in financial system.  I didn't clearly express that given less severe circumstances I too would be a lesser advocate of government intervention. True our economy is a survival of the fitness and these greedy institutions that shoveled out poorly underwritten loans should bite them bullet. However and very unfortunately these bad credit loans became financial instruments that the current economy became reliant on.  Since the loans are dissolving and now worthless (which should have been realized when such loans were originated) the economy is in turmoil.  So to let the banks fault would equate to suffering of the middle class (the majority of our nation).  I understand and respect opposing post that this intervention installs fears that U.S. is running along communist/fascist lines but letting "weak" financial institutions fail would shrivel the middle class thereby widening gaps between wealthy elite and create a larger lower class.  Such socioeconomic system is truly what occurs in communist/fascist state (despite its fundamentals of equal wealth).  The recent posts have an elitist undertone because advocating the fall financial institutions fail ignore the many that would fall with it. 



     Now to address the rescue plan I know it certainly has not had the effect its proponents wished.  However the problems have no quick fix.  It is going to take well over a year for our economy to bounce back from our wayward actions.  Because of this recent polls have revealed an increasing number of people against their new stake in banks.  Moreover in becoming validated by the senate and the house it was altered and hastily thrown together.  As it is missing the many safe guards I advocated (since this is taxpayer investment) I don't feel it will have the effect on the economy many wished. Banks can get away using this money to pay dividends to investors.  As credit is still tight I'm not sure this when rescue plan will start to exhibit positive effects on economy.  I knew in advocating it that there was no single answer to complex problem.  However I believe it has prevented market from diving irreparably thereby protecting middle class or least buying more time.