Monday, September 29, 2008

Wall Street is Main Street Folksies...

It has been maddening to watch and listen to the media coverage of the Wall Street Bail Out/ Rescue or whatever you want to call it. Liquidity is something that our economy must have. In other words, banks must have monies to loan to folkies or the whole operation shuts down my friends. Apparently 95 percent of Americans don't get this.

While I agree with President Bush that Wall Street got drunk, the American public also has a lot to answer for. Americans have been asleep as legislators from almost every state have abused earmarks that have been tied to every piece of legislation passed including and even especially the monies that fund the wars in Iraq and Afghanistan. The public has looked the other way as their representatives have over-spent. It's a general problem. There are lots of us who buy much more house than we can pay for and more car and carry credit card debt we can't afford... all of which has contributed to this mess.

So, one way or the other WE as the general public have to bite the bullet and take the consequences. My strong preference is that we urge our legislators to get some kind of rescue package passed and fast. My congressman, Rob Bishop, voted against the bail out bill.. he will be hearing from us tonight and possibly in November.

How does it affect "Main Street" if we don't... (I swear I'm going to gag if I hear one m0re time about Wall Street and Main Street). If banks don't have money, then neither do you. If you want to get a car loan, a home loan, a home improvement loan, a small business loan, if your small or large businesses requires a line of credit to make payroll ... if congress doesn't do something fast.. we can forget about all of that. Think of how just the things I've mentioned can shut the economy down tight.

You may be thinking that YOU are one of those responsible people. You have protested in writing every time your representatives have over-spent. You have used credit responsibly and carry no debt. But, if you work for the car dealership, the real estate brokers, or the furniture retailer down the street and you would still like a pay check this weekend... I'd get my congressman to grow some chest hair and vote for some kind of rescue package. Is that "main street" enough people?


I am LoW said...

From everything I can gather, it seems like we are up a creek one way or the other. That's it's better long term to not bail out and if-y if we do.

I'm am praying SO hard we get through this!

Shelese said...

Amen sista!

Shelese said...

hmmm, what's your take on this "common sense" plan going around emails and blogs?

"Common Sense Fix"

love.boxes said...

Many of the precepts in the "common sense fix" have been added to the Senate bill that will be voted on today.

People are making too much of the Golden Parachute thing. If the government had to take over an organization completely ... for instance Fannie and Freddie.. the huge compensation packages for executives became obsolete... However, honoring contracts is an absolutely important thing. Notice that Dave Ramsey made that contingency as well. If the company simply recieves a loan, but is still functioning has in independent entity... those contracts should still be honored.

The 700 Billion should not really be seen as added debt. Only %4 of the mortgage (even in the high risk catagory) are in trouble, which is good news.. it shows that most Americans are still honest folks and are trying. I believe the congress should do something to help even more of those folks by helping them into fixed mortgages as Ramsey suggests. Taxpayers will not, in my opinion be stuck with the 700 Billion. Think of it as a taxpayer investment. It may not pay off as hoped and we may be stuck with some, but there is a very good chance taxpayers will make a profit, which I'm sure our reprentative will spend, but atleast we won't be really taxed for it. There is precedence for the kind of action that Sec. Paulson has asked for going clear back to Alexander Hamilton. Ronald Reagan used this kind of tactic to rescue S&L's in the 80's.

While Ramsey has some good ideas, I don't think he understands the liquidity situation nearly as well as Sec. Paulson. Ramsey is a smart guy and I know he can teach people how to be fiscally responsible at home and even wealthy, but we have a systemic global finacial crisis here. President Bush has found the smartest folks possible (with the resumes to prove it) to help us out of this crisis. Our representatives need to get in line fast and quit stumping for Nov.