InnocentsAbroad

Read It and Weep for the USA

The notion that the alternative to handing over bailout cash to the richest people in America and Europe, is "the economic downfall of global economy" -- that might be a false dichotomy. The alternative is a skillful use of the financial prowess of the US government to purchase assets at market value. and have a share in any benefits from a market recovery.

That does not mean subsidizing bad investment and contractual actions by the money center banks and investment banks.

For instance, what kind of collateral are being put up for loans by the Fed ? (for example, the loans to JP Morgan and Lehman). How is the U.S. government going to participate in recovery of equities in the financial sector (if and when ).

If the U.S. government simply hands the money over, no questions asked, the whole process ends up sounding like an extortion, or payoff.