My Two Cents

Bailout Fallout

Chris Farrell Mar 21, 2008

This is an intriguing comment/proposal by a listener, Matthew in Los Angeles. My own sense is that there is growing resentment, maybe even anger, at the Fed-driven bailout. I believe the Fed is doing right by the economy and Main Street. Still, it’s hard to stomach that the same financiers that pocketed huge sums of money during the go-go years have now turned to the public sector to bail them out during tough times. Private profits and publc losses. What a deal.

Ok, the bailout and buyout of an investment bank might be one of many solutions
by the feds but what about the forgiving of all the student loans made under the
federal loan programs. This solution would free up a tremendous amount of debt
that people amassed to further their education which is what we should focus on
instead. Many low, moderate and middle income families and individuals went
into debt to advance their education and career. A tax rebate is not the long
term solution but education debt forgiveness would be. It is easy to do, easy
to accomplish, and would not fill the pockets necessarily of those top 10% of
the wealthy families in the US.

Bailout those individuals and families who amassed debt to get an education
not investment banks who were greedy and homeowners who may have been both
ignorant and/or greedy. We are more willing to have my large tax dollars go to
reduce individuals student debt than investment banks and financial
institutions.

But who are we, definitely not the CEO of Bears Stearn or JP Morgan Chase or
Chairman of the Federal Reserve, or an economist, just a hard working middle
class family of two professionals with two kids.

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