Are we compounding our financial difficulties by rewarding borrowers and punishing savers?
Rewarding borrowers? How? The Financial Institutions were not borrowers. They were lenders. And they got the bail out money, and are sitting on it, not lending it so persons can finance the purchase of cars, with means the big 3 cannot afford to stay in business much longer. And continuing to foreclose instead of re-negotiate the mortgages-thereby flooding the market with houses which they still fail to loan money for person who are not VERY well off from getting financing to purchase them. I have known lots of people who followed sound financial practices. They saved and saved and saved for years. And they are running out of money. Not because of a “credit beyond their means” but because they were laid off as long as 4 years ago and have not been able to secure a comparable paying job. Their jobs left the country, along with the money from the Trickle Down Economy tax breaks.
