Quote:
Originally Posted by VRM
Right now the economy is sinking partly because Joe six pack cannot afford to go buy beers and cars. This, in turn, causes loss of jobs when Joe does not go to his favorite bar or Ford dealer.
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Totally Wrong. Joe six pack will always be able to buy beers.
The current mess started in the financial community ... period. It had absolutely nothing to do with the unemployment at 5%. But the end result WILL be higher unemployment if the bailout bill fails.
Most small business and banks are finding it extremely difficult to get short term loans (less than a week). They are afraid that the other institution might go belly up in a few days, so short term borrowing is extremely tight.
This has spread to Joe Six Pack trying to get a car or house loan. He would have gotten the loan 6 months ago, but he may not get it in today's economy.
You can thank Barney Frank and Dodd for this mess (plus a ton of other Democrats, Republicans and shady wall-street types). It started to unfold many years ago.
Now, because Joe-six-pack does not have the money to buy a house or car without a loan, Joe six pack's brother loses his job at the auto dealer.
And around and around we go.