What Have They Left Obama With

The Bailout Made Simple

President Obama has so far gotten a lot of grief and judgment from the folks in the media and people at home. Right now there should be a thought that if people hounded and harassed George Bush the same as they are President Obama, would we be in the financial crisis we’re in now.

Most of us didn’t know what the financial market was about, heck most of us didn’t care about the fat cats on wall-street, but now since everything’s been crumbled to pieces everyone’s looking to see if President Obama is going to screw up an already screwed up situation.

We’re expecting a world of change in 100 days but it took eight years to get us here. If the governments supposed to be the highest sector of power how did Wall Street cause us to go bankrupt? When will people realize Bush cut a huge deal with these companies so he can sit pretty for the rest of his life?

I’ve summarized below my thoughts on how the bailout plan will work for the economy and get things back running as they should.

If the banks are 10 billion dollars in debt, for instance, it doesn’t make sense to only give the banks 10 billion dollars.

How would the economy grow? How will things start flowing again?

If the banks receive 100 billion dollars, not only do they have money to get out of debt, they also have money to start back lending. That will get credit going, loans can be given, and sense of security can be regained.

Money in the banks means money to lend to businesses or small business entrepreneurs. Businesses buy from other businesses in order to keep business going. Supply and demand.

Once businesses become more capable of selling their products to corporations, other small businesses, or people, jobs are created.

When jobs are created money begins to flow into the pockets and homes of the employees. These average employees are what generate money back into the economy because they want to keep up with the demand around them, televisions, cars, cloths, electronics, food, etc.

The average Joe puts the money back into businesses, businesses put the money back into the banks, and the banks become dependent again. The whole cycle begins to generate and fuel the economy back into its normal routine.

I am confident that President Obama’s plan will put this economy back on solid ground. We as Americans sat back and let Wall Street rob us of our security, peace, wallets, and dignity. Why are people looking for the failure of the President before they think about the state of the economy?

Maybe looking at the wrong things got us in this mess in the first place.