Look, as I’ve said many times before, I’m no economist. But, I’m not stupid, either. According to reports, the new conventional financial wisdom is that Americans must support the bailout bull bill, or the credit crunch will get so bad that we won’t be able to get mortgages, car and student loans, etc. Obama, from AP:
“This is not a plan to just hand over $700 billion of your money to a few banks on Wall Street,” the Illinois senator said.
Without a rescue for the financial sector, ordinary people will soon begin to suffer, Obama said.
“If we do not act, it will be harder for you to get a mortgage for your home or the loans you need to go to college or a loan you need to buy a car to get to work,” Obama said.
Who can afford those things now? Isn’t Detroit trying to get 25 billion or so from the government for it’s own auto industry bailout? Per Newsweek:
With just two weeks in the current session of Congress left to land potentially life-saving federal loans, Detroit’s car companies and Michigan’s congressional delegation were in a state of chaos. Michigan lawmakers trying to sell the deal to a skeptical Congress were frustrated by what they saw as a lack of effort from the automakers, several congressional sources tell NEWSWEEK. Auto execs were annoyed that they were being lumped with the Wall Street bailout crowd, which didn’t help Detroit’s plea for $25 billion in low-cost federal loans to see it through its cash crisis. The acrimony came to a head in a tense conference call Sept. 11 involving 25 power brokers in Washington, D.C., and Detroit, including some of the Big Three CEOs, according to Congressional sources. As congressmen and their staffers debated the minutia of how to craft the legislation for the loans, the CEOs on the other end of the line kept asking everyone to speak up. “We were very much in the weeds, which is not a good idea with a conference call of 25 people,” says Rep. Dave Camp, a Republican from Midland, Mich. “It’s been difficult to get consensus [with the carmakers]. It’s been very frustrating.”
Frustrating? Tell me about it. Time has an interesting, myth-busting piece that’s worth a look here. Seems to me, though, the fact that nobody can afford houses, cars and credit is what lead to people defaulting on existing loans in the first place, so it’s hard to see how opening up the lines of credit is going to change things for the better. But, like I said, I’m no economist.
And I’m not getting any of the 700 billion, either.
*UPDATE: I missed this earlier. Breitbart says Detroit got it’s money in the Pentagon package.
PUMA
Just Say No Deal

