Q: I am almost inclined to say that our economy is becoming socialized. I mean, if my taxes pay for these companies, I sure would like a piece. http://news.yahoo.com/s/ap/20080920/ap_on_bi_ge/financial_meltdown worker for I AM, so because Russia is struggling, we should too??
A: That we will make sure the rich get covered. The US tax system is based on income, not wealth. That means this bailout transfers a Trillion dollars from those getting income (workers) to those holding stock (wealthy) by having the government buy junk mortgages/CDOs that investors are currently holding. This is hoped to keep the economy humming along and the workers employed. It is an extreme case of trickle-down economics. Reagan cut taxes while this is an immediate transfer. It's interesting that the Democrats are on board after knocking Reaganomics for years and conservative Republicans are against it after promoting Reagan as their patron saint.
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