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View Diary: Carnegie Mellon Professor: No bailout needed (305 comments)

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  •  from what I'm hearing (1+ / 0-)
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    Calamity Jean

    the immediate problem is businesses whose lines of revolving credit used to pay vendors (so they can order via purchase order instead of cash) are locked up.

    If this isn't fixed soon, we get millions out of work.

    I believe a temporary fix for this should be created and the time between now and Obama's inauguration should be spent crafting a long-term fix for the financial and housing markets... one good for a generation instead of $700B buying time for Congress to get re-elected and stuff falling into the crapper right afterwards.

    Looking for intelligent energy policy alternatives? Try here.

    by alizard on Wed Sep 24, 2008 at 04:05:55 PM PDT

    •  bank lending (0+ / 0-)

      bank lending is the problem, banks are in trouble and dont have enough capital so they have stopped lending - so if isnt fixed the problem will spread through out the economy - for example bank of america cancelled their loan to mcdonalds franchises (for remodelling) yesterday  

      •  Do we really need that? (0+ / 0-)

        I mean, some things we can live without.

        •  if your employer needs a line of credit (0+ / 0-)

          to pay invoices with, you do not need that employer's line of credit cut off. Unless you want a permanent vacation from your job and its income because your employer can't buy what it takes to keep you working.

          However, this is on the other end of the spectrum from unwinding the derivatives and credit swaps and other kinds of debt that only the extremely wealthy can get into and should be fixable with a lot less than $700B and should be solved as a different problem over a longer timeframe.

          Looking for intelligent energy policy alternatives? Try here.

          by alizard on Wed Sep 24, 2008 at 10:42:45 PM PDT

          [ Parent ]

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