Quote:
Originally Posted by Dollarmansteve
Id just like to point out that no one is "giving" 700B to anyone. The government is proposing becoming a "market maker" or buyer-of-last-resort for distressed assets (ie high-risk securities backed by not-so-great mortgages).
If it saves the system, the long term benefits far outweigh the short term ramifications. I don't think anyone wants to live in an illiquid economy, that means ONLY the rich will have anything. If businesses don't have easy access to credit, the first thing they do is fire people. If people don't have access to credit they don't buy homes or cars or appliances.. or anything other than the basic necessities. But lots of people wouldn't be buying anything since they would be unemployed.
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People really don't understand what it means. They think they have the safety to cast judgement and luxuriating in the financial sector getting their comeuppance. That opposing the plan is taking care of the normal everyday American. Thats all fine while they sit at home watching the market tumble and they've got no shares or direct investments and they still see the rebills coming in and not being able to think 6, 12, 18 months out and what happens when the credit markets freeze and they don't have the luxury of schadenfraude when it's no longer just a stock market problem...