Are you convinced about the bailout yet?
Are you feeling the pressure? Have you noticed the shift in the conversation by Wall Street, the media and the supporters of this bailout?
It is now all about “Main Street”
The government bailout is now called the “Rescue Package” The stock market will collapse and the equity lost will be lost by everyone including Main Street The problems are spreading to small business which is going to cripple the country
This is spin marketing in its most unethical form. They couldn’t sell this pig to the American people, so now it’s being repositioned to tell you if you don’t buy the pig, you won’t be able to buy the bacon and ham at the grocery store either.
The “Rescue Package”
Still an unprecedented, massive government bailout and expansion of government that is attempting to socialize the losses of the private markets. It will be the first installment of many more to come. Even the spinners admit that this won’t fix the problem.
The Stock Market Collapse and Main Street
The markets didn’t collapse when Paulson and Bernanke tried to scare us into acting two weeks ago. Nor did it collapse when we all woke up Tuesday after the initial rush to a bad solution was appropriately leveled in Congress. The stock market is going to decline whether this bailout happens or not. It is is over inflated due to too much credit in the system for years and has to readjust to reflect reality.
The Problems are Spreading to Small Business
This is the most dishonest and deleterious message in the new spin. I heard the same story about the guy that couldn't meet his payroll because of these problems, from five different politicians and commentators on three different news shows. The latest (second story plucked from millions of small businesses) is the lady that can’t get access to a $1 million to expand her business.
First of all, if I spent some time at it, I could go find you stories of small businesses that are getting credit and loans right this very minute.
Second, this “guy” must be running his business on a shoe string if he needs to borrow money to make payroll and will probably be out of business soon regardless of the bailout.
Third these people may not get access to the loans they need anyway. Credit has tightened and rightfully so. Banks don’t want to make loans they don’t think will be paid back anymore (novel concept).
Don’t listen to the fear mongers who want your money to pay for the problems. Demand a private market solution that may have to contain a temporary, tax payer bridge loan, to get the best solution in place.
Let’s work this problem hard, for whatever time it takes, with the right people. The market can certainly hold its collective breath until it's done.
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