I understand the danger of Banks not having money to lend. I really do. What I don't get is why the solution is a 700 billion dollar "rescue" of the banking industry. If the danger is that these financial institutions will not have money to lend businesses and individuals, why doesn't the U.S. government, instead of bailing out wall street, use the 700 billion to loan money to individuals and businesses? I'm not an expert on economics, if there is a logical fallacy in this argument, please point it out.
This plan helps individuals who need to get car and home loans. It helps small business get loans for expansion and expenses. It helps individuals. It doesn't help the people who screwed up, but they shouldn't be helped. Why can't the government directly loan money to people to keep the economy going instead of giving an insane amount of money to wall street?