Bailout?

I have been having a really difficult time with all of this talk about an economic bailout and as I have listened to the discussion about it from a variety of sources and it just bothers me that all everyone wants to do it throw blame and money at the problem.

First lets talk about the blame. I am sick and tired of hearing that the blame is to fall on "the failed economic policies of the past 8 years." Is it the Bush tax cuts that got us into this?

From what I understand this is a credit issue. Too many banks making too many risky loans to too many people who were not able to keep up with these absurd adjustments in the mortgage rates.

Are the people who took out the loans to blame? Well, yes they should have realized that there was no way they could keep up, but why were these individuals offered these programs in the first place?

Are those greedy banks to blame? Why are banks offering these illogical loans anyway? I guess in a way they were playing the housing market and hoping to bennefit. Isn't that what the individuals who took out the loans were doing as well?

Or maybe it is the governments fault, this lack of regulations that everyone is talking about. Was there a relaxing of regulations during the last 8 years? Probably, but what about the increase in regulations that required certain banks (including Freddie Mac and Fannie Mae), to issue more risky loans in order to assist low income families in buying a home?

So the government pushes the program for political gain, the banks push the program for financial gain and the individuals who took out the loan did so for personal gain. In a case where houses continue to sale and home values continue to rise this situation could continue to bennefit everyone. However, as with all forms speculation there are down turns and when all of these payments began to increase almost simultaneouly everyone party to these loans suffers. Unfortunately in this situation not only those who participated in these programs suffer but everybody is suffering to one extent or another our whole economy is seffering.

So how do we fix the problem? I am no economist but if this crisis is a function of credit than lets help banks increase their ability to lend money. We already tried that before Bush left office. What about helping people keep their homes? Is this really the best idea? Most of these people bought houses that they could not afford and will not be able to pay off their loans. I don't want them to be stuck but something needs to happen so that they are not thrown out on the street but all should not just be forgiven either. This is a complicated situation to which we all wish there was a simple solution but throwing money at it is not going to work.

What of this $789 Billion dollar plan that congress has come up with? What exactly is in this bill? All I have heard is that it is needed immediatly to stimulate the economy and if it does not happen things will get worse and that it will create 3.5 Million jobs. The only substantial claim in there is that this bill will create Jobs. So if we are spending $789 Billion to 3.5 million jobs than each of these jobs is costing the government $225,428.57. If that is the pay for these new jobs than line me up for one. I'll take it right now!

What I want to know is how is this Bill going to increase the amount of credit?

How is this bill going to help these individuals who are not able to pay for their house but still holding them accountable for their mistakes?

And finally how do we increase the cash flow in the economy?

Can anyone answer me that?