Posted on 09/30/2008 1:18:37 PM PDT by Salena Zito
Not everyone gets the Wall Street-Main Street connection.
But they should, because both streets intersect on every block in America.
“In the sense that if the credit market dries up on Wall Street, capital will be unavailable on Main Street,” said University of Arizona political science professor Robert Maranto. “So no car loans, house loans, business loans and the like.”
In the short run, Maranto explains, there is no reason to panic, but over two years it would lead to higher unemployment. Maranto also reminds that most of Middle America's savings are plowed into the stock markets, “so if the market loses value we all take a hit.”
University of Virginia political science professor Larry Sabato said he is not surprised the House of Representatives defeated the bailout bill Monday.
(Excerpt) Read more at pittsburghlive.com ...
I don’t understand this argument....they are saying that its more beneficial to artifically hold up the market rather than to let it naturally contract, right? So, can someone please explain how manipulating the natural course of things is going help us? If we create jobs and loans that shouldn’t be there, how far are we setting ourselves up to fall then?
So then why not send the BAILOUT directly to Main St.? It’s all connected right?
>>“So no car loans, house loans, business loans and the like.”
We’ll see. That sounds like extortion to me.
Maybe credit should be returned to local communities and the banks that represent them - instead of credit being managed by criminal extortionists who are trying to run a protection racket by holding a match to the economy they soaked with their CDO gasoline.
no. read the whole thing. they are saying that americans sent a message to congress.
>>I don’t understand this argument..
It’s simple and can be condensed into two words:
“Protection Racket.”
So we respond to this extortion by establishing the precedent that whenever Wall Street gets in trouble, it can hit up the taxpayer for help. Yeah, that’s going to provide an incentive to the financial services industry to make prudent business and investing decisions.
This matter only became a national crisis of the first order when the Treasury Secretary’s old employer faced a significant loss.
Campaign slogan:
It’s the corruption, Stupid!
This is a good thing.
Not extortion at all. It is just the way capital markets work.
If we do not recapitalize the markets soon, credit will dry up. If that happens, the collapse of the entire economy will follow shortly behind.
We are in for a very rough ride regardless who wins in November, although Obama's tax increases would undoubtedly make a very bad situation infinitely worse. Increasing the capital gains tax as he proposes to do would take even more capital out of the market and would unnecessarily prolong the recession / depression we would find ourselves in.
The American people would have their "change" though, and they would finally be rid of the "evil" George Bush, so I am sure they will all be deliriously happy if that is the way things play out.
I was talking with an analyst at one of the large banks who kept insisting the bailout is necessary. When I asked for a breakdown of toxic assets into those backed by assets (i.e. real mortgages), and those related to CDs and CDOs, his response was... well you did your homework. The response floored me. It was so obvious that they believe main street has no clue whatsoever.
i think we rubes get that - and we are saying we ain't bailing out either - next threat please
Bull.
Banks loan money.
That is what they do.
As long as there are banks, there will be loans. The interest rates may go up to cover bad debts and other risks, but if you want a new car you will be able to get a loan (provided you can prove you have the ability to make the payments).
read the whole thing, that is the point made by both prof’s
Right now the demagogues are in charge.
Let’s punish the bad guys.
Unfortunately, we will be the ones punished.
But then, that’s a good thing right?
Insanity rules for now.
This is Richard Mellon King or whatever his name trying to protect his own wealth.
Sorry Rich, but I don’t see my local business owners running around in lotuses buying $5,000 bottles of champagne at 25 years old on my main street. They all work too damned hard for their money for that crap.
I’ve spent time in Manhattan and the financial district, please to not insult my intelligence by telling me Wall Street is Main Street. I don’t see the farmers actually growing the crops your commodity brokers make millions off of driving their Lamborghinis to church on Sunday, or to the local watering hole after hard days work, or up to the weekend home in the Hamptons. You want to know where they excesses and corruption in the system is, it AIN’T main street.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.