Is this complicated?

southpol:

mikehudack:

wiesen:

If the credit markets fail entirely, some bad things will happen.

Consumers won’t be able to have credit cards (including the ones they already have).

Consumers won’t be able to borrow money to buy a car or truck. Neither will small businesses. Or large ones.

Students won’t be able to borrow money to go to college.

Large companies who have short-term debt (aka “commercial paper”) won’t be able to get new short-term debt and they will default. This will cause them to fail. They will then lay off a lot of people. Note: Most large companies have commercial paper.

Look - I get that people are angry at Wall Street. I am angry at Wall Street. But to view what is going on right now as a “bailout for Wall Street” at the expense of “Main Street” is asinine. Without the things that Wall Street does, Main Street doesn’t function. It might annoy you that Wall Street is full of overpayed douchebags who think they’re the masters of the universe. It annoys me. But recognize that this is way WAY past helping out the Wall Street firms.

Exactly.

I think we could also do a better job of explaining that it’s not $700 billion just being given away. We may make money on he deal. Or, at the very least, the financial industry can be made to reinburse the taxpayers via legislation that “recoups from the financial industry an amount equal to the shortfall in order to ensure that the Troubled Asset Relief Program does not add to the deficit or national debt.”

It is not perfect, but the amount of demagoguery against the plan is not justified given the alternative, in my opinion.

Quite right.  

Cite Arrow reblogged from southpol
24 notes | | Sep 29, 2008
  1. thesteve reblogged this from peterwknox
  2. brianconley reblogged this from mikehudack and added:
    The people responsible for the predatory lending. (this was a bit of a parallel/horizontal-sequitir) And if that’s not...
  3. winstonwolfe reblogged this from mikehudack and added:
    brianconley:mikehudack:stevewyshywaniuk:...Barney Frank: Did you order the Code Red? John...
  4. mikehudack reblogged this from brianconley and added:
    Who broke the law? Who would you like to send to jail?
  5. brianconley reblogged this from mikehudack and added:
    Send people to jail! That’s what America wants. I mean, if you’re talking about the same United States of America that I...
  6. mikehudack reblogged this from stevewyshywaniuk and added:
    Dude. It’s not Wall Street you’re bailing out. It’s the United States of America.
  7. stevewyshywaniuk reblogged this from mikehudack and added:
    We’re all in this together. without a doubt. Wall Street needs to be fixed. But you’re not going to get anywhere with...
  8. brianconley reblogged this from mikehudack and added:
    Exactly. The wealthy party.
  9. brianconley reblogged this from stevewyshywaniuk and added:
    Look, the question is, how do we hold the bastards responsible. This whole mortgage thing reminds me of a lending scam...
  10. heavysigh reblogged this from southpol and added:
    I guess my problem is just that instantly a 700 billion bailout was proposed, I know that they have probably been...
  11. mikehudack reblogged this from stevewyshywaniuk and added:
    You’re thinking about this as one party helping out another. You’re wrong. This is one party helping itself out.
  12. forthebooks reblogged this from peterwknox
  13. tesslynch reblogged this from peterwknox and added:
    Is 1:50 PM too early to start drinking?
  14. walpaper reblogged this from peterwknox and added:
    capitalism works...way it’s supposed to, new lenders...in...
  15. stevewyshywaniuk reblogged this from mikehudack and added:
    Quite right. You’re right, there does need to be...what exactly Wall Street needs. But...
  16. ineedtoo reblogged this from peterwknox
  17. peterwknox reblogged this from mikehudack and added:
    southpol:mikehudack:wiesen:...credit markets fail entirely, some bad things will happen....
  18. shorterexcerpts reblogged this from southpol and added:
    I’d like to see some more economists (ideally those without significant holdings in companies like Goldman Sachs) tell...
  19. adamiss reblogged this from mikehudack
  20. mikehudack reblogged this from southpol
  21. southpol reblogged this from mikehudack
  22. mikehudack reblogged this from wiesen
  23. inaudiblewords reblogged this from forthebooks and added:
    all just confusing and simply...sound good. My solution
  24. wiesen posted this