I presumed that the frozen state of the credit markets was what he was referring to. That particular market appears not to be working at all...and he doesn’t want that to spread to other areas of our economy that will stop functioning.
I have heard this statement a lot these past few days. Can you give me a source to show that credit markets are frozen?
Every single new car dealer is offering financing on their cars; my local credit union says they are getting a record number of mortgage applications (now that the bottom feeder subprime guys have gone bankrupt), etc. At the local level, I simply am not seeing any evidence of the credit markets being frozen.
Further, the proposed 700B bailout, will be funded from, you guessed it, these same credit markets that are "frozen".