I typically avoid any political commentary here but this is a big deal. I fully believe that the "bailout plan" has been misconstrued as some sort of "fat cat" bailout, but it's solidly a bailout plan for the middle class. The percentage of plain folk that appear to be against it are clearly uninformed to the consequences of not acting. The Dow is a bellweather of the overall economy, whose performance is alarming but the real issue here is the credit market. Without gov't intervention the credit will go away, but it's what drives the economy. Forget about 401K losses (substantial), the biggest impact without available credit. Many companies use short term credit to make payroll - without it they will fail. Many small businesses use credit to even out the peaks and troughs of the market will faill without credit. All of this will result in job losses that willl result in other business failures down stream to the point where we are at least in a severe recession. Even for those not affected by the downturn, who want to finance a car - forget it. Need a new house - forget it. Credit card debt impact is still uncertain.
Some will argue a "free market" approach that will equalize everything by itself (I expect comment from Steve at this point). The reality is that the economy has not been "free" for hundreds of years. In fact, the current crisis is due to DE-regulation of the financial mechanism in th3e 1990s.
Some will argue a "free market" approach that will equalize everything by itself (I expect comment from Steve at this point). The reality is that the economy has not been "free" for hundreds of years. In fact, the current crisis is due to DE-regulation of the financial mechanism in th3e 1990s.
