Um, Now What?
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Um, Now What?
The bailout failed. How do we pick up the pieces? Or do we?
Posted Monday, September 29, 2008 - 3:26pm
Option 3: Do nothing
This is by far the least likely to happen, for many of the reasons above. This would mean the White House, congressional Democrats, and congressional Republicans all refused to do something about the crisis. That’s a scenario that will quickly become politically dangerous as Americans watch banks burn, paychecks evaporate, and credit rates skyrocket. They’ll start to wonder why the government didn’t prevent this from happening, and at that point all of the politicians will become scapegoats. The entire country—politicians, bankers, and citizens—will once again be forced to ask itself, now what?
(Photo of George Bush by (article) Alex Wong/Getty Images, (cover) SAUL LOEB/AFP/Getty Images, Photo of Nancy Pelosi and Henry Paulson by Chip Somodevilla/Getty Images)
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Comments
What happens now?
So far what we've seen happen is a serious rally in the value of the dollar.
It seems there are some smart people out there who see that the massive bailout would have incurred debt and encouraged the Federal Reserve to print way too many more of the things, and this would have devalued the dollar. So, we get a stronger dollar out of the deal.
Now if we could just get us to abandon those banks who could only think of how to fool poor people into paying on mortgages for a time then foreclose on them, and move our assets to those banks that want to, and are in a position to, loan out our money, this credit 'crunch' would evaporate in a hurry...