Fed May See Lending to Companies, States as Next Crisis Fronts

Fed May See Lending to Companies, States as Next Crisis Fronts

www.bloomberg.com

Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month's downfall of Wall Street titans: its spread to corporate America and state and local governments.

Companies from Goodyear Tire & Rubber Co. and Duke Energy Corp. to Gannett Co. and Caterpillar Inc. are being forced to tap emergency credit lines or pay more to borrow as investors flee even firms with few links to the subprime-mortgage debacle.

(visit the link for the full news article)

So 400 economist tell Congress NOT TO RUSH a wall street bail out because they knew it wouldn't help. Congress Should have listened to them and put the money where it would help the most. Congress should have invested the $700Billion in main street. What happens when State and local Governments run out of money? Can they Even file bankruptcy?

Companies that don't even have anything to do with the sub prime mess are running out of cash. They could have used the bailout money to shore up their bottom lines. Congress could have gave some of the bailout to the homeowners that are having trouble paying their mortgages.

Dividing the Bailout money between homeowners, businesses that had nothing to do with the sub prime mess, local and state governments would have done more to help this country And the majority of american would have supported that bailout. instead of bailing out greedy bankers that created this mess to start with.

www.bloomberg.com
(visit the link for the full news article)

[edit on 10/6/2008 by Mercenary2007]

[edit on 10/6/2008 by Mercenary2007]

California is already running out of money.
So is Massachusetts.

Yes, cities and states can declare bankruptcy.

The credit crunch is NOT easing up with the passage of the bailout. Asian markets are in trouble today because the credit markets are NOT unfreezing, Euro markets will probably fare just as bad, and in the next day or two we'll follow what those markets do.

The longer the interbank credit freeze is in effect, the sooner we'll see it in retail stores, groceries, gas stations...anywhere we buy things from retailers who stock inventory on credit.

It has already hit the retail markets long ago. Sales have droped dramaticly this year.

It will only get worse. This is the begining.

Giving some of the money to homeowners is a waste. The money would only be able to pay for one month mortgage and they will be in the same position in the next. If they can't aford it, they shouldn't be in it in the first place.

The effects of the 700 billion will not be notice as of yet. They haven't even used any of the money to buy any bad debt yet. This will in turn free up capital. It's a long term issue.

Either way the market is going to crash. Something rather than nothing had to be done, so they signed the bill.


[edit on 6-10-2008 by amfirst]

Yeah, it kind of makes you wonder why the bailout was rushed through so quickly. Could it be so that the scumbags could fleece us while there was still money, knowing full well that the rest of the country was about to tank? Rush through the wall street bailout before the money runs out for good?

This week should be an interesting one.

yeah i've seen it here where i live. alot of the small business have went out of business, even mine . Store shelves are stocked but the variety we had a year ago is slowly shrinking. Gas here is doing ok, the distributor owns the pumps at the stations so the stores don't have to worry about credit to buy Gas unless they are an independent shop.

here in Missouri we've had a budget surplus for the last 3-4 years so we're really not feeling the credit crisis at the state level but at the county and city level they are starting to feel the effects of the economy slow down. decreased house values less tax income because people are spending their money mostly on what they need not what they want.