Okay, now we have the buckets going, what now? I am still not happy with the bailout. I do believe the free market would have eventually worked something out. My thought, what about all the people who have been doing the right thing, paying their bills on time, etc… What kind of break do they get? Also, I thought Sarah Palin summed up the problem well when she made the point that mortgage companies convinced people who could only afford $100,000 homes that they could really afford $300,000 homes. Oddly enough, she seems to be making more sense then the major candidates. Oh well…
Of course, one of the economists I respect, Steve Forbes, did make the point that the bailout and the stock buying that is part of it, should stabilize the banks enough to unclog the pipes. His point now is that the economy is health except for the blockage of funds. If the funds stay blocked the economy will go down hill fast.
I have been in the process of moving so I am not as available the last few weeks. We hope to get the majority of our items moved tomorrow. Cross your fingers. And our Internet, which was supposed to be hooked up either Monday or Tuesday now won’t be hooked up until Thursday or Friday. Go Time Warner Cable. Yeah!!!!!!
p.s. Is Internet a proper name? The blog spell checker always shows Internet should be capitalized. Or is this just the first wave of the machine finding a life of its own?
The economy is healthy except for the blockage of funds? That sounds like “sir, your heart is healthy except for the blockage of the arteries” to me …
Not that I agree with his premise or conclusions … it just struck me as being a fairly inconsistent statement.
Anyway … yes, it might unclog the credit pipes, but to what end? I can’t see any good result that involves creating more credit.
As far as “Internet” goes, you have to capitalize it to show that you are referring to “the” Internet, as opposed to all those lesser internets out there.
One of the analogies Forbes used was blood flow. He said that every organ in the body may be perfectly healthy but if there is no blood flow they will die. He said credit to the economy is the same as blood in the body. I understand what he is saying. As far as credit goes what he is talking about is business credit that is loaned everyday to help businesses keep running. As I am sure you are aware, it takes alot of money to start up a business. A business that requires retail or other space costs even more. Until that business begins to break even or make a profit the only way to stay afloat is credit lines. A friend of my wives just opened a wine store. He was quoted in the paper as being worried his business line of credit would be shut down even though he has already set up the loan. A store such as his will not break even, if it survives, for about five years. He will need that line of credit if he wants to try to stay in business. So, I agree that personal credit may need to be reined in some but business credit needs to flow.