Is this complicated?

If the credit markets fail entirely, some bad things will happen.

Consumers won’t be able to have credit cards (including the ones they already have).

Consumers won’t be able to borrow money to buy a car or truck. Neither will small businesses. Or large ones.

Students won’t be able to borrow money to go to college.

Large companies who have short-term debt (aka “commercial paper”) won’t be able to get new short-term debt and they will default. This will cause them to fail. They will then lay off a lot of people. Note: Most large companies have commercial paper.

Look - I get that people are angry at Wall Street. I am angry at Wall Street. But to view what is going on right now as a “bailout for Wall Street” at the expense of “Main Street” is asinine. Without the things that Wall Street does, Main Street doesn’t function. It might annoy you that Wall Street is full of overpayed douchebags who think they’re the masters of the universe. It annoys me. But recognize that this is way WAY past helping out the Wall Street firms.

24 Notes/ Hide

  1. thesteve reblogged this from peterwknox
  2. brianconley reblogged this from mikehudack and added:
    The people responsible for the predatory lending. (this was a bit of a parallel/horizontal-sequitir) And if that’s not...
  3. winstonwolfe reblogged this from mikehudack and added:
    brianconley:mikehudack:stevewyshywaniuk:...Barney Frank: Did you order the Code Red? John...
  4. mikehudack reblogged this from brianconley and added:
    Who broke the law? Who would you like to send to jail?
  5. stevewyshywaniuk reblogged this from mikehudack and added:
    We’re all in this together. without a doubt. Wall Street needs to be fixed. But you’re not going to get anywhere with...
  6. heavysigh reblogged this from southpol and added:
    I guess my problem is just that instantly a 700 billion bailout was proposed, I know that they have probably been...
  7. inaudiblewords reblogged this from forthebooks and added:
    all just confusing and simply...sound good. My solution
  8. forthebooks reblogged this from peterwknox
  9. tesslynch reblogged this from peterwknox and added:
    Is 1:50 PM too early to start drinking?
  10. walpaper reblogged this from peterwknox and added:
    capitalism works...way it’s supposed to, new lenders...in...
  11. ineedtoo reblogged this from peterwknox
  12. peterwknox reblogged this from mikehudack and added:
    southpol:mikehudack:wiesen:...credit markets fail entirely, some bad things will happen....
  13. adamiss reblogged this from mikehudack
  14. shorterexcerpts reblogged this from southpol and added:
    I’d like to see some more economists (ideally those without significant holdings in companies like Goldman Sachs) tell...
  15. southpol reblogged this from mikehudack
  16. wiesen posted this