The Failout Plan

Now I'm sure everyone by now has heard of the 700 Billion in US taxpayer money that will be used to bailout the large private banks in the US. But i was surprised when i talked to a few of my personal Friends that they had no idea what i was talking about when i made mention of it. Which is rather appalling and sad but ill go into that with some other post.

It seems the media is hailing this government decision as a god send and the economy is saved. But i think the solution is far to late in coming as I'm predicting the world wide economy will go into a depression. Lenders and Banks will be cautious about who they give loans to as well as the proposed government regulations that will be coming with this plan. So the golden age of the real estate market is over as there will be less potential buyers out there.

Now I'm not sure if the plan itself is bad to be perfectly honest. But the timing of it being so late it is basically a useless idea investor confidence has been utterly obliterated in the past few weeks as the markets have shown. But with the poor timing of the plan it is almost a certainty that the investment and the idea that the government will make the money back plus a little bit extra is flawed. The government is purchasing homes and investments at there inflated price that they were bought at, so once the market finally recovers the likely hood of there value being what it once was is also zero. This plan is just a waste of tax payer money at this point. I might be off on my estimate of how many taxpayers there are in the US but i used 100million as my estimate which with that it will cost each one a little over $7000 and that's no chump change right there. It almost appears that a better solution is a trickle up plan and if the government gave that 7000 to each taxpayer. It allows the people with the bad debts to pay off some of them and would possibly save the economy were the current one will not.