Why to give free money to the banks. Why can't they just bailout Underwater mortgages, helps the folks and take care of Bank Balance sheets at the same time..???
The Banks literally own the Federal Reserve. And in a debt based fiat paper world - they control everything, even sovereigns. A little historical background, that most may already be aware of, as well as the strong possibility that Ron Paul heads the subcommitte that oversees the Fed: http://fiatcollapse.blogspot.com/2010/11/federal-reserve-wages-financial-war.html
Ron Paul says the first thing he and his son Rand Paul are going to do is get the Fed to open the books and see where the bailout money went. Wall St supported the GOP victory, so they have put Ron Paul in an interesting position. If anyone in the Republican Party tries to stop him, I think it will be a clear signal what to expect - but so will Republicans getting behind him in support. Wait to see which one it is.