Why most people don’t like the bailout

I’m convinced people don’t mind government stepping in to shore up credit markets to make sure the economy doesn’t free-fall. No one’s thrilled about it, but letting the nation crash so it may eventually rebound sounds great on a blog, but this isn’t like sweating out a cold. People will be hurt badly in pursuit of some ultra-libertarian pursuit of economic purity. But in the same day that newspapers report about the bailout, newspapers report this.

Circuit City Stores Inc.’s departing chief executive is receiving at least $1.8 million in a severance deal (AP)

Circuit City, a company that’s lost money every quarter but one since early 2007, who fired loads of employees and offered to hire them back at lower salaries, whose stock fell to a 22 year low yesterday, can cough up millions to the guy who led the way to the basement?

Regular folks hurt by a slowing economy don’t get 1.8 million when they’re fired. Folks, that’s the base of Reagan Democrats who have union jobs and conservative values, and they just want to work.People have no problem with rewarding those who do well. Millions for fatcats who did horrible jobs will destroy this bailout.

Taking the $700 billion we send overseas to pay for energy and developing our own energy here would launch an economic boom. Taking a $700 billion bailout for millionaire severance packages will launch an economic revolt.

  • It’s a mess. People are angry, confused, and scared. This doesn’t leave a lot of room for rational thought, and even we when do find the room; it’s too big and complex for many of us to wrap our minds around.

    I’ve been trying to keep up with the various proposals, purposes, and consequences of such actions and non-action. We knew the economy was in a pit, spinning its tires, but this latest shake-up has me wondering how far the failure of these institutions will reach. Can we even be sure if $700 Billion will save us from what is claimed will inevitably happen if we don’t move forward with some type of bailout. This kind of uncertainty has me wondering if I really am willing to accept a position with a private company.

    Something likely must be done. Exactly what and exactly how are beyond me. Further regulation, executive pay caps, etc. Who knows?

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