Thursday, October 2, 2008

Economic Rescue Plan, aka, Bailout

I'm fascinated that after the "$700 billion bailout" for Wall Street failed to pass in the House that it's suddenly acquired a new name -- "The banking rescue plan". The media have jumped on the bandwagon.

The media realize that our nation's credit system is frozen. Small businesses, municipalities, college students, the average folks living in small towns can't get credit. What happens on Wall Street definitely affects Main Street. But folks in small towns and large cities across the nation believed the bailout was only to help people with grossly high compensation packages who live in Greenwich, CT. They called their Representatives and said, "We're mad as hell and won't take it. Vote 'NO!'" They didn't realize that voting "NO" would harm them in their everyday lives. They didn't understand the interconnectedness of the financial system.

Hence, the name change, and some other tweaking to make the bill more palatable. I heard Obama speak in favor of the bill, and he made great points about its importance to businesses and individuals across the nation. I just hope the House of Representatives votes in favor of the plan.

Our economy really depends upon the free flow of capital -- the circulation of money -- and access to credit. I mean, think about it. Painters and contractors ususally get 30 days to pay for their materials. When that credit dries up, they can go out of business immediately.

This rescue plan is for all of us -- not just "fat cats."
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