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Originally Posted by Mike33
Will the $700 billion rescue plan effectively fix the problem or just staive it off for awhile longer, or make it so that instead of hitting rock bottom we stay a few rungs higher?
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From what I understand the bailout will allow the market to avoid bottoming out and it will also allow the government to buy up all the bad debt and restructure it. If done properly it could fix the problem. if they just hand money to the same douchebags that caused the problems it may only be a short term fix.
In the end it will be meaningless unless they do something in the form of some kind of rules or regulations to keep this from happening or we will be doing this again in another 8-10 years.
If there is no bailout it could get real ugly. Banks could close, people could lose their retirement and pensions, companies that rely on short term loans could close or greatly scale back causing there to be a huge loss in jobs, it could be a very ugly situation.