I'm not an economist. I have no clue how any of that stuff works, and I don't really understand, to be honest, how companies that have to be bailed out to the tune of $700 billion can even still be functioning.
However, I have an idea that might be incredibly stupid, but it might also still work.
I understand, I think that the biggest concern with these companies crashing is cash liquidity. One of the possible problems is institutions will stop loaning any money at all - including loans for construction, gas for truck fleets, etc - the type of loans that keep our jobs and economy going. So, one of the things this bailout will do is infuse a massive amount of cash into the system that will hopefully keep everything flowing. I think that part makes sense.
The part I don't understand, however, is why we would bailout the companies who fucked up with taxpayer money while hurting the taxpayers who are struggling under debt, etc. Why would the money go to the top and not to the individuals who need it most - the ones who are losing their homes and livelihood?
So here's my idea. The Federal Government takes every single American citizen's credit card and revolving debt bill and pays it. According to CreditCards.com the total of American's revolving debt totals $952 billion. Now granted that is higher than the $700 billion that would go to corporations, but this money would actually benefit people. According to the same website 74% of American households have credit cards and 58% carry a balance, so the majority of Americans would also benefit from this program.
I'm not talking about bogus rebate checks like we got last year. Though nice, they didn't help do all that much. The U.S Treasury would cut checks directly to the financial institutions that hold the debt. Line by line every American would become debt free. The nasty practices of the card companies would end as Americans wouldn't rely on credit anymore. Americans would have far more liquid cash per month to make sure they can pay their mortgage and bills. Banks would get back to the business of keeping the American economy going by keeping the cash moving.
Clearly it's just an idea, but sometimes the crazy ideas actually work. All I know for sure is if you are going to spend a dime of American taxpayer money, it should go back to the American taxpayers first.