Before long, there will be about 700 billion comments online about the $700 billion Wall Street bailout bill.  It will be some time before we see its impact on what average Americans want to know: Can I get a mortgage loan? What about a car loan? What will happen to my credit card rates?  For those in distress, the questions might be:  Will I be saved from foreclosure? Can I get refinanced now that my ARM mortgage payment has skyrocketed to $500 more per month?

It took two times for the bill to pass the House of Representatives in some form.  Inman News ironically blames this on a lack of panic on Main Street.  Despite distress in the stock market, there weren't runs on banks, with lines of depositors unable to get their money.  The average American simply did not quite understand how what was happening on Wall Street would affect them.  As a matter of fact, especially after hearing that the WaMu CEO would be parachuted into retirement with $20 million after two weeks works, many were a little happy to stick it to the banks.  Representatives voted  their constituents' will.

Prior to the second vote, an analyst on the Today Show, which get more plays in middle America that does Inman News, did a segment that spoke on what could happen if the bailout bill didn't pass.  The analyst claimed the President and Secretary Treasurer failed to sell the plan to the taxpayers.  She clearly showed how consumer loans for cars, homes, and small businesses would dry up and make tight credit markets even tighter if the bill did not pass. 

By Friday, the House got the message (no link intended here with the Today Show piece) and voted to pass the bill.  While is it too soon for clear answer to specific questions of how it will help consumers and small businesses, an FHA refinancing provision in the bill is expected to give some relief to mortgage holders. 

 

1 Comments on Questions from Main Street

OCT
08
2008
759,106 Points 13 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Very good post and a very good assesment of what went on and why. Now we wait and see how it all plays out .
7:35am • #1


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Don Wenner

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