Hi, I’m hoping someone with economics knowledge will help me out here. I’ve been reading about the bank bailout plan with interest, since I believe that the government is giving our hard-earned money to greedy banks which have failed in their duties. And, to add insult to injury, it’s happening after the same government refused even the minimal amounts of cash to help citizens with bare-minimum needs such as food programs, allowing uninsured people to access medical care, etc. etc. etc., instead choosing to throw our money away at a misguided “war”. These views notwithstanding, I admit that I am a rank amateur in understanding economics, having devoted much of my intellect to studying the arts and human behavior instead.
So, I read an article this morning where Pelosi said the plan “…gives taxpayers an ownership stake and profit-making opportunities with participating companies; puts taxpayers first in line to recover assets if a participating company fails; (and) guarantees taxpayers are repaid in full – if other protections have not actually produced a profit”. So, is this doublespeak of some sort, like that the government, not individual taxpayers, will actually get profits if the bailout pans out into a positive balance? Or does it mean only taxpayers who own stocks or homes? Surely knowing the good old USA, it does not mean that the actual taxpayers - all of them - would share in any bounty that might be recovered.
Of course, it’s my hope that the above quote means that every working person in this country would get an equal share of the potential profits that might come in. However, since I’ve lived in the USA all of my life, I fully realize that the statement is most likely some form of lie, and that even if massive profits are received, they will be funneled to those who are already rich anyway, or people who will throw the money at some stupid war, profiteering contractors, etc. etc. and not use it to help citizens in general.
Help me out here. How, exactly, would taxpayers “recover assets”? And when she says “taxpayers”, whom exactly does she mean?