Wall Street Versus Main Street Misses the Point
“I think it’s terrible, all those big shots getting away with millions,” Ann Collins, 72, told a reporter in Delaware. Collins view is shared by many in this country who saw the proposed bailout of illiquid toxic assets as a ‘get out of jail free card’ for Wall Street. But in reality, this issue is not about getting Wall Street off the hook, its about avoiding the Great Depression II. The people on Main Street should be just as hopeful a future bailout bill passes as those on Wall Street. Here’s why.
Let’s say Ann Collins wants to buy a new car. She finds the car she wants, only to discover that she has to pay all cash for it because no bank will give her a loan. Maybe Ann wants to buy a new house. If so, she better have about $228,000 in cash for the payment. This figure is the medium home price in Delaware. Without this bill Ann is going to find it difficult if not impossible to get a mortgage. Then there is the danger of a run on banks. Nothing would put more fear into this country than our ATM machines not dispensing money.
The credit markets in this country are in a crisis. This crisis is not limited to the titans on Wall Street. It effects us all. That is why it is essential people on Main Street and Wall Street come together to support a bailout bill. This issue has been framed the wrong way since the get-go. It boggles my mind as to why President Bush and the leaders in Congress have not made clear that this bill is not a Wall Street bailout but a bailout for everyone in America. I don’t blame Ann Collins and the millions like her who are against the bill and see this as a helping hand to millionaires. I blame the ineffective communication ability of our leaders. If the country was really aware of the stakes and the dire circumstances facing all of us if this bill fails, I believe we’ve have more bipartisan support for the measure.
And if not, rich or poor, Wall Street titan, or Main Street regular, you will all meet up together soon - on your local bread line.
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6 Responses to “Wall Street Versus Main Street Misses the Point”
Funny on how this got started on Wall street and now you want me, an average guy who his whole life lived with in his means, which varied from time to time, to bail them out. Screw the claim of credit drying up, thats good! People that can’t get it deserve it, drive the car you have for another year and live ore responsibly. I work too hard to help the folks on wall street, you made your bed… now sleep in it. The market will correct it self, it is still over 10,000. Slow down~!!!
Comment made on September 30th, 2008 at 8:59 amWhat about the people on Main Street who are trying to get loans to put their children thru college, buy that first time home, or car? Main Street will get hurt just as much as Wall Street. Our economy needs credit and if credit isn’t available to regular people this country will face a depression. The risks are too great and that is why a bailout bill must be passed into law.
Comment made on September 30th, 2008 at 9:26 amJason thats exactly what got us into the mess we are in, if you can’t afford it, don’t have good credit or just don’t pay your bills you don’t get the loan for college, wait to buy the home you can afford…. its the regular people that the industry preyed on to get in over their head in the first place… EARN THE RIGHT TO BORROW!!! You bet some people will learn to live with in their means and not saddle the rest of us that use good judgment to pay there bills for them!
Comment made on September 30th, 2008 at 10:07 amI think everyone is missing the point. For example, most people cannot afford to pay cash for a car. So, if there is no credit available, then car sales will drop dramatically. An auto dealer usually borrows money for his floor plan. If his sales drop and he cannot borrow the money for his floor plan, then he will have no cars to sell. Therefore, he lays off his employees. If there is no one selling cars, then Detroit will have no need to make cars, and more people will be layed off. All those people who have now been layed off will not be able to pay their mortgages. More loans go into default.
This is not isolated to the wealthy, or the frivolous. This crisis affects us ALL. And seriously, how many people can afford to pay cash for a car, or a home? We are not just talking about people who run up huge credit card bills.
Comment made on September 30th, 2008 at 3:10 pmThe point is a few greedy businesses and some irresposible consumers put us in this mess. Making credit easy to acquire won’t help, only digs us in deeper. We have a free market economy that will go thru a correction and right itself. Detroit and every foreign automaker will make funds availiable, credit, to move there cars. Let business dig themselves out of the mess and leave my tax dollars alone. If it such a good deal acquiring all this depressed credit and you hear on how we “may” even make a profit down the road why are they in such a hurry to sell? The last time this president was in such a hurry for something it was spelled Iraq.
Comment made on October 1st, 2008 at 7:09 amI think it was more than just a few greedy businesses and irresponsible consumers that got us into this mess. But at least we agree on Iraq.
Comment made on October 1st, 2008 at 9:19 amLeave a Comment