Fed Bail Outs

This financial crisis in the markets has gotten me worried about the economy. AIG fell into the lap of the Fed along with Fannie and Freddie and earlier, Bear Sterns. What's next? These maga corporations ride high when they are profitable, giving hundrends of millions to top execs and CEO's; but when their greed consumes them, the Fed steps in for the rescue? What about rescuing us?

How about instead of leaving the people to crash and burn, offering a guaranteed low interest loan plan directly to the people so they can be saved from foreclosures? Now, I know some of the homeowners just cannot sustain their payments no matter what. Those people probably should lose their homes. But there are many others that just need a temporary boost, due to job loss or illness or high interest rates on their homes. Arrangements can be made with this group. Saving these people, in turn, would save these financial institutions at the same time. They would all get their mortgage payments in on time hence, a lot lesser crisis!

The housing market would be saved from going under. Isn't that the root of all this Wall Street chaos? I'm no economist, so why does this make sense? Let's exaggerate and say there are 5 million homes at or near foreclosure. The Fed lends homeowners an average of $40,000 each at an interest rate of 3% fixed for 10 years. That would cost the Fed $200 Billion. It's a lotta dough. But what they've spent (so far) is over $830 Billion on bail outs.