The unconstitutional money should have never left congress to begin with. Maybe this unconstitutional money should have gone directly to people like this. It seems it would have done more good. The banks are holding on to it and building bigger banks. How in the world is that helping the economy. Fact is its not.
You are hitting several different issues here.
First, the money should have never left Congress, but the difficulty is in finding real alternatives. I have talked to several financial advisors who have all said essentially there was no choice. The government was the only institution big enough to bail out these problems. To let them go unaddressed could have had drastic melt-down consequences. I don't like either idea, personally.
Second, it may have done more good going directly to people, but to whom? The size of this bailout could have probably gotten everyone out of doubt overnight if it were given to individuals. But that doesn't help companies. So is is more complex than that. Companies with multi-million dollar facility and manufacturing liabilities won't be helped by you paying off your house.
Third, there was not enough oversight of what it could be spent for. It should not be spent to buy up other banks. But thanks Congress, it is.
So there's a whole passel of problems. There is no good way to solve this.
