I think it's quite clear. Our government printed up $700 billion to give to the banks and they gave 10% of it off the top to the CEOs and are sitting on the rest of it. In a capitalistic society, businesses are allowed to fail. The banks that made the stupid loans should just go broke. If you're going to bail anyone out, why not bailout the homeowners? Then they can pay the mortgages, the banks can get the money and EVERYONE wins.
I believe that $700 billion bailout was just another way for the corporate elite to steal from the taxpayers.
OK, now I'm with you, and agree with you to a point. The banks are behaving appallingly. That said, not all that money is earmarked for the banks - I believe it's $250bn of TARP funds that is being used in the banking sector. Still a vast amount of money, I agree, but not $700bn. The remaining $450bn has gone nowhere yet because the incoming administration will undoubtedly want a say in how it is spent.
However, allowing the banks to fail is a recipe for anarchy, and that's where our paths diverge. I would far prefer the treasury to have stuck to the original plan of buying out ailing businesses rather that giving them cash injections, but if the banks collapse then capitalism collapses.
As for bailing out homeowners, that's crazy. Who makes the decision about who gets bailed out and who doesn't? How do you prevent the massive fraud that would accompany such a decision? What about people who have their life's savings in banks? If banks are sitting on money now, would they not continue to sit on it under your Homeowner Bailout Plan? Who administers the bailout? It would cost several billion dollars more just to administer, because you're dealing with tens of millions of individuals rather than at most a few hundred financial institutions.
Remember, banks are a critical link in a chain. If the banks go under, the financial undertow will be incalculable, along with the impact on businesses, jobs, savings and the American way of life.
The bailout was not a way for the elite to steal from taxpayers, but it may become a way for them to get away with mind-numbingly poor management and sharp practice.