I just got a flash from CNN saying the Wall Street "Bail Out Bill" passed. I have no idea whether that is good or bad. On one hand, the thought of our government adding $850 Billion to our national debt of $10 Trillion in one fell swoop scares the hell out of me, BUT the thought of our entire economy seizing up, throwing us into a depression, because no one can get short term loans for payrolls, scares me more.
In case you doubt that can happen, go below the fold:
Below are a random sampling of articles I've found describing problems states, towns, and individuals are currently having because of the credit crisis. It can only get worse, a lot worse, from here if this bill doesn't do what they expect it too.
States are already having problems. Below are the problems that just two states are currently facing. I imagine the situation in the other 48 is just as bad, or worse.
LOS ANGELES — With the credit crisis cutting off access to short-term financing, California has asked the United States government to lend it $7 billion, warning that the state could run out of money in a few weeks without it. Gov. Arnold Schwarzenegger in a letter Thursday night to Treasury Secretary Henry M. Paulson Jr. said that with credit markets essentially frozen, the state, like a slew of others and local governments nationwide, had no access to short-term financing that normally support day-to-day operations.
"California and other states may be unable to obtain the necessary level of financing to maintain government operations," Mr. Schwarzenegger said in the letter, which was first reported by The Los Angeles Times.
US credit crisis affects Fla.'s ability to borrow money; state can't issue bonds for schools. The nation's credit crunch has frozen Florida's ability to borrow money, but that isn't yet causing problems for the state, a top state money manager said Tuesday.
Florida has been unable to borrow money for nearly three weeks, said Ben Watkins, director of the division of the state's Division of Bond Finance.
As such, the state cannot issue bonds for schools, roads or programs to purchase environmentally sensitive land, Watkins said.
As the squeeze increases Cities and towns across America are finding it harder, if not impossible, to secure loans to meet payrolls and other basic needs.
Wake and Durham leaders say the national financial crisis is making it nearly impossible to borrow from banks to pay for schools and other projects.
In the past two weeks, Wake County delayed plans to sell $454.5 million in bonds, while Durham County's attempt to borrow $30 million failed because no lenders bid on the offering.
Agriculture could very easily come to a halt
Farmers and ranchers could feel credit crunch. U.S. farmers and ranchers, already feeling the crunch from rising costs for fuel and other production needs, may have a tougher time getting loans they need next year because of the national credit crisis, agriculture officials said
90% or more of our high school students who need loans to attend a college or university may not be able to get them.
Many college students across the nation will begin to see higher costs for loans this spring, while others will be turned away by banks altogether as the credit crisis roiling the U.S. economy spreads into yet another sector, student lenders and Wall Street firms say.
The examples above are just a few ramdon samples that I was able to come up with in a few minutes of searching. There are many, many more. There is no sector of our economy that will not be adversly impacted by this credit crisis.
I don't really know if this bill will help or not. No one does. But one thing is for sure, our government is putting all our eggs in one basket. If this bill doesn't work, the likely hood of a real depression seems to be a distinct possibility. Our government is rolling the die, betting our nation's future, and hoping that craps doesn't come up.
Have you been directly affected by this crisis...yet; if so, how? If not, how do you feel about the problems we face?