There was a lot of hand-wringing about the appearance of the bailout plan in the House
rather than consideration about its necessity. The credit market is the grease for the wheels of our economy, not just for the distant entities on Wall Street, but for the small business person on Main Street. Consumers and entrepreneurs won't be able to get loans for durable goods, like refrigerators, cars, or mortgages, even if they have good credit. Many Democrats and Republicans today shamefully demonstrated their ignorance on a very important event in our nation's history. These representatives voted with their upcoming electability rather than what was important.
As for the people who have been decrying this plan for the last two weeks, maybe they should start thinking about where loans make an effect on their own lives. I understand why people are reticent to trust the Bush Administration, but to sink our economy just to spite them isn't going to hurt them as much as its going to hurt us. Likewise for the executives on Wall Street, if the economy grinds to a halt, these people are going to be able to walk away regardless with millions in pay and bonuses. Really, the people hurt today by the voting-down of the bailout are the average American.
I don't like spending $700B more than anyone else, but isn't spending it better than facing massive layoffs, a continuing mortgage crisis, and depleted retirement accounts?
Here's one example of the credit market grinding to a halt: http://consumerist.com/5056487/ameri...-25000-to-1800
. In that post, a small business owner is discussing how his credit limit has been cut 93%. That owner may not be able to pay the expenses of his company for the month and many other businesses probably are in the same boat. Others may be unable to borrow to buy new inventory, or capital goods. Many businesses may need to shutdown or could even go bankrupt.
Not passing the bailout isn't going to hurt Wall Street as much as it's going to hurt the majority of Americans on Main Street.