The article only goes half way. Yes, there is a lack of trust in Wall Street, and a lack of trust among banks to lend money to each other and to us.
The more important lack of trust, however, is in who is trying to fix the problem. I believe there is a greater lack of trust in the government of the United States. Even before this crisis, the government’s credibility suffered significant erosion. Bush had low approval ratings, Pelosi’s congress even lower. People believe our government is broken.
There is little faith that our broken government, which most people believe had a hand in creating this crisis.People are skeptical that the government is going to fix it.
Here’s my question:
What assurances have we had that the policies that fostered these bad loans have been reversed? Are we going to pump money into the financial sector only to continue the process of loaning money to those who cannot repay?
Well? If such assurances have been made, I certainly have not heard them.
Its hard for me to trust Congress for a solution because we see Barney Frank front and center as the face of the solution. And Pelosi, I certainly don’t trust my Senators and have just sent each of them, Specter and Casey, my second email of the day.
That's exactly what they are planning to do with the $ 700 Billion - pump enough air back into the bubble to get us past the election.
All the scare talk about the economy will get Obama and a veto and filibuster proof Congress elected, but they really can't afford to have the economy begin to actually unravel prior to Nov. 4 because that might frighten people so much their reaction might be unpredictable - like voters might decide to toss all the incumbents, not just Republicans from office.