The so-called “bailout” (its not) is aimed at stabilizing the credit markets after so called toxic debt is taken off of many institutions’ balance sheets, so that the commercial paper and repo markets open up again. It was never intended as an overnight remedy.
I have no idea whether it will work, but it better. If it does, it will take many months because trillions of former AAA bonds are scattered about the world, and no one knows how to value this stuff, except that some is now clearly worthless. If it doesn’t work, I think we will witness a free market correction that will tank many, many people and businesses.
Yes, it was.
At least that’s how its proponents sold it and its how they justified their votes. The media went so far as to track stocks on wall sreet side by side with the votes. Suggesting if it didn’t pass stocks would crash.
Now you can argue it was never meant to be a “bailout” or have immediate effect but that’s not what the people on capitol hill were arguing just one week ago. It’s passage was supposed to save our 401k’s and stop a slide into a recession and other such nonsense.
You’ve missed the entire point. The point being our politicians and media did their best to sell this bill on a false premise. We’re calling them on it now and we’ll keep on doing so.