Let’s get this right. The public was against the bailout, we the public called our senators and representatives and told them so, in very large numbers! So the House didn’t pass this ridiculous monster of a bill. If you listen close, the people on TV want the bill to pass to save the bankers, brokers, hedge funds, mortgage companies, and their own investment accounts. They don’t care about us. If they cared about the population of the United States they would never pass such a plan to maintain high debt and credit. If they cared and had the money, then why didnt’ they push for public health? The professionals who caused this deep debt issue should be forced to continue to hold the bad debt, the bad mortgages, many of which have already been reposessed. It is wrong for the tax payer to pay for this.
That being said, let’s tell the real story. We do not have to have a bailout. This isn’t 1930, this is not the Great Depression and conditions are much different today! In the 1930’s people did not have savings, stocks and money and only a few companies did. We have a robust middle-market and the state and local banks, regional banks, and many corporations have cash and cash equivalents stored up in their accounts.
Stocks do not have to crash, that is a symptom of people wanting out based on fear. At this point they want out just because Top People who should know better, like Paulson, the President, and some Congressmen are trying hard to scare the public into spending $700 Billion dollars.
So what if we have less credit in the system? Many good thrifty people came out of the depression years and there is nothing wrong with that. A cash system exists and we should use it more, not less. Why do we think we have to have deep debt for the economy to work? If you have been paying your bills, and your employer can pay your wages, then you don’t need a bailout. Most people pay their bills and are in great shape. Also, the family design is much different today. Grandparents don’t live with their kids and grand-kids very often theses days and they already have money and guaranteed retirement funds, health insurance, and more.
I can’t say it enough, THIS IS NOT 1930 no matter how much they try to get you to believe it is. Let the system melt and let’s all get back to good business.
If Paulson and the other leaders get their way on this we will have an extended recession. If they do not, the market will re-price to a reasonable level which more people can afford to participate in.