Quote:
Originally Posted by kosseg
The bill is essentially there to reinstill confidence in the credit markets by setting a floor and stimulating banks to continue to lend. If credit freezes, say goodbye to growth. Many small businesses will no longer be able to tap their lines of credit at their respective banks, and they will no longer be able to access credit at any favourable terms. This will trickle down to the individual american whose boss can no longer meet payroll because they don't have access to the bank credit that they usually use to pay their employees.
Wall Street effed up big timed, but it wasn't just the big commercial/investment banks that are at fault; it's a whole slew of groups ranging from the bond rating agencies, to the mortgage brokers, to the individuals themselves who spread themselves way too thin trying to "keep up with the Joneses" (completely cliche term obv.).
With the proper left of centre amendments (including reduced CEO compensation, equity stake, etc.) this plan is a hell of a lot better for Main street than most people have been led to believe.
This is a good read:
http://seekingalpha.com/article/9787...not-completely |
+1 Well said. This is pretty much my understanding as well. I don't like the idea of a bailout, but I do understand its function and why it's necessary.