The bailout impacts on the middle class

Dr. Housing Bubble has been correct all along on the crises that this housing Bubble would bring. That alone should make you inclined to read what he is saying now about the bailouts and the implications for middle class Americans. You will find much sober information in this article.

Economic Main Street Manifesto: 10 Reasons how this Bailout Fails the Middle Class American Worker. » Dr. Housing Bubble Blog

The question that most Americans have on their mind about this historical government intervention is whether this program is ultimately going to work. In short, no. In this article I’m going to highlight 10 major reasons why this global intervention is nothing more than stitches on breaking economic flesh from preventing the world from going into the infected abyss. Just like I highlighted why the California housing market will not hit a bottom until May of 2011, I believe that this current intervention is simply window dressing on a dry and stale turkey.

Make no mistake, we were on the precipice of systematic failure in our financial system. What has occurred only ensures that we don’t go into Mad Max territory. In addition, the global turmoil has once again cemented the fact that we are all bound by the hip and we are all going to face pain together. A severe recession is baked into the global financial cake.

If you really want to see a financial system go off a cliff take a look at the Icelandic stock market which opened up again:

Quietly, I’m thinking many of these central bankers are hoping for a lost decade instead of a global collapse and Mad Max universe. I also think they are trying to help out key parties while their actions clearly ignore the Main Street person. The psychology is already changing. During the debates, I was watching CNN with their little audience meter on the bottom and the quickest way from the middle to the top was bashing Wall Street. Some issues took time to work up or down but whenever someone said “corporate greed” or “Wall Street speculators” the bar shot up. This is class warfare folks. We are seeing a generational system collapsing and many cannot confront the idea that their ideology was so utterly wrong. Many will have to wrestle with their own internal cognitive dissonance. Some will channel this toward unjustified anger and some will adjust to the new way credit will be in the world. At this moment, we need to do all we can via pressure/voting/action that this money is at least channeled to efforts that will help our employment base, help fix the healthcare system, and do things that protect the majority of Americans.

As you can see from the above 10 reasons, these economic measures do very little aside from stabilizing the financial market and giving us a false sense of security. There are many better ways to spend a trillion dollars and Main Street has a few ideas yet Wall Street and the politicians have others.

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