Could the $200 billion federal reserve bailout be better used?

Why is the solution to bailout the banks by taking on their bad debt? If I understand correctly, the banks must be bailed out so that credit doesn't dry up. Why can't the US govt use the federal reserve to offer govt credit and mortagages at a reasonable rate? That way, over time the money creeps back into the coffers, people can get credit to buy homes (only on the basis that they can pay it back) and the "average" person is kept going instead of saving the skin of the incompetent greedy bankers. I'm no expert, but I saw this fiasco coming years ago, so why didn't the banks? Banks were offfering credit for holidays, new kitchens, etc, etc, when people were already up to their eyeballs in mortgage debt, based on the housing market which was a bubble waiting to burst. It's just ludicrous! Would a system such as I describe above, of the govt providing state-funded credit work better than a simple write-off?
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Octogen. Is the best way to keep money moving to throw it down a dark well? If the government bypasses the banks and injects money into the population, then they can spend it in the shops can't they? The myth about cashflow is simply to ensure that the cash only flows in the direction of the richest.

Most of the population are not aware of the Federal Reserve Scams. Do you know who owns the Federal Reserve Bank? Private business men who include the Morganâ€™s, Rothschildâ€™s and the Rockefeller family. What they do is print money out of thin air, as much as they like and itâ€™s not regulated!!!

They lend money to the government in large interest rates so that the Government is in debt to them. So they control the world economy.
How does the Government pay of their debt to the Federal Bank, they don't WE do, in the form of Income Tax from our wages. In 1913 (as well as funding Hitler, Bushes grandfather was included in the funding) these private business men convinced congress that the public should pay Income tax and Congress did what they were told.

There is NO law written down anywhere that states that we have to pay Income tax...itâ€™s a fraud. Not one cent or penny of peoples Income Tax payments goes to the government. It ALL goes directly into the private bankers pockets of the Federal Bank and the bank of England, Don't believe me get the DVD documentary by Aaron Russo called Freedom to Fascism'.

During the Napoleonic war between France and Britain Rothschildâ€™s friends in battle got the news of Britain victory back to him first. Rothschild then went to the stock market and sold all his property, the other wealthy landowners and business men also sold all their properties and business because they assumed Britain had lost the war as the powerful Rothschildâ€™s were selling up. After that Rothschildâ€™s bought up everything at massively reduced prices as nobody else wanted them.

This process also happened during the great depression and it is happening again today, people are selling their business and property and greatly reduced prices and in a few years they will be snapped up by the wealthy for next to nothing.

When asking Western school children about the significance of Waterloo, the answer will be something along the lines of â€˜the decisive battle between Napoleon and an English lead European coalitionâ€™. In fact, the future of the European continent was perceived to depend upon the battle of Waterloo. If Napoleon won, France would have been confirmed as the undisputed master of Europe. If Napoleon was beaten, England would have become the leading power in Europe and greatly expand its sphere of influence.
What Western school children are not taught - for obvious reasons - is the much bigger story behind the official narrative, the story of one of the biggest frauds in human history. Nathan Rothschild, the head of the English branch of the Rothschild crime family, took advantage of his advance knowledge of the outcome of the battle by tricking the London Stock Exchange into believing that Napoleon had won. The resulting crash of the Exchange enabled Nathan Rothschildâ€™s agents to buy the entire London stock market for a Penny in the Pound and seize control of the Bank of England.

This shameless fraud was ruthlessly repeated in 1929. The private owners of the U.S. Federal Reserve, Rothschild subsidiaries J.P. Morgan, City Bank and Chase Manhattan Bank were awash with money earned by financing World War I. Using their market power, Rothschildâ€™s agents first engineered an artificial boom in the stock market, tricking smaller banks and private investors into putting huge amounts of money into the stock market and then deliberately crashed it, enabling the Rothschild agents to buy most of the U.S. stock market. The ripple effect of the New York crash also enabled Rothschild agents in other countries, such as Germany, to buy local corporations at a fraction of their actual value.

Eighty years later, it looks like our ruling psychopaths are at it again. They are systematically destroying trust in the U.S. dollar, causing holders of large amounts of green bags to sell them. At the same time, the Rothschildâ€™s are preventing the European Central Bank from printing sufficient Euros for U.S. Dollar owners to exchange all of their holdings into Euros. That way Dollar owners are forced to buy gold instead, causing the gold price to explode.

Simultaneously, the Rothschildâ€™s are using their influence on the media sector to spread rumours of an imminent crash of the U.S. Dollar and international stock markets. As per usual, in the day and age of infowar, those rumours first started in the alternative Internet based media, only to spread into the mainstream business media. Last weekâ€™s â€˜global stock and credit market warningâ€™ of the Rothschild owned Royal Bank of Scotland means that the next Waterloo must be imminent.

All it takes is a trigger such as a thwarted Israeli attack on Iran or the blocking of the Persian Gulf for oil transports, followed by a major stock sell-off by Rothschild agents. Once the worldâ€™s stock and credit markets have completely crashed, the price of an ounce of gold will be in the thousands, enabling the Rothschildâ€™s and other owners of large gold holdings to buy t

This money could certainly be better used.

I would suggest spending it on research and development of money trees.

In times of economic difficulties, poor people could be given access to money tree orchards, and be allowed to pick money from the trees.

Autumn would become a popular season, because the high winds would blow the money off the trees, into the clutches of those who waited nearby. I've bought a tent already, and will be camping out at the nearest orchard.

They could use the money just as effectively by making money papermache (how ever that's spelt) banker. He'd be just as good as a real one.

This $200 billion Federal reserve bailout is not intended to bail out banks but to buy up those toxic mortgages created by those Investment banks. Lehman's collapsed because it has no more working capital to fund its operations. The mortgage related investments which they created have lost their worth the values because the mortgages had become toxic and if not removed in the banking system, it will be cancerous to new mortgages in the banking system. So buying up those toxic mortgages is the only long term solution to do. Bush and his administration is taking unprecedented actions. As he said this is unprecedented times and tough actions and medicines are need to put the economy back to health.

The saddest part is that many people are walking around with no health care, schools are losing funding left and right and the cost of living rises as fast as the price of gas and we can bail out these institutions without a second thought. America is really a crappy country. Once they bail these institutions out, the people are going to get hit with higher taxes. Mayor Bloomberg is already talking about raising property tax by 7% in New York. Where is the fairness?

That sounds reasonably fine in a social sense, but they don't want people to be rich like them nor social, money equals power and they have it all. And a perfectly evil plan to make people homeless so they can place them in little cubicles or concentration camps like proper slaves. Its just all too wrong to be sound, there is definitely something more sinister going down.
SuperCee~ *made a good point the health care is non-existent schools are suffering.
Why would they want to treat the poor? Indeed it doesn't make any money.
And Why are schools suffering? Because they need to keep the poor dumb.
Society is made this way for a reason no doubt in my mind and others I know on this site are aware of Iluminati too.
Its feckin creepy this could be interesting I haven't seen this one yet myself.
http://video.google.com/videoplay?docid=1711167042360042859
It locked briefly but you can get it going again moving the slidey thing.......I am intrigued.........
http://video.google.com/videoplay?docid=4252024791562244343&hl=en

I don't know about you dear Flissy but that all makes perfect sense.
Anyway I hope France is treating you well and you have a lovely day, educating Yahoo users in the art of Irony. :D

The point is to bring us to our knees and then offer the solution of a combined currency with the US, Mexico and Canada. I saw this coming a few years back as well and am a tad upset that I have to "bail" out anyone at all....they saw it coming too...

Stooooooooooooop!!!!!!

This makes my brain hurt! I'm going back in my double-wide and watching Family Fued!

***shaking barely clad bum up the redwood trailer steps***

Hi !!! It is not just sub prime mortgages and homes that need rescuing.Money has to keep moving (like a river) to generate even more money. If a river slows up it does not re-oxygenate,and the life in it dies, plants and fish etc., it is the same in commerce if banks do not lend to lesser banks at an interest rate then it is dead money. Put it another way. If we all stopped spending the shops would not survive and there would eventually be no where to spend your money.
This is sound economics. Just think about it in a wider content.

Yes, but it's too simple for them! They'd need to form their own banks to administer this and then they would have the responsibility which i can assure you they simply do not want.

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