Yes, it's a lot of money. Yes, it's mighty unpopular. Economists theorize that without it our free market economy will right itself without spending all that dough. Probably. But when? Americans are united in one feeling now: Fear. And that's bad for business, bad for our emotional health and bad for the future of the country. I quote here from Mr. Yun, the Chief Economist for National Association of Realtors. Makes sense. I welcome your comments at Lynne@LynneConnelley.com.
"I have received messages from many of you, wondering why NAR is supporting this unprecedented government investment in financial institutions and the housing market. The truth is that consumers everywhere already are feeling the impact of the credit crisis. Many buyers can no longer find financing they need to buy a home, contracts are being pulled off the table, and sellers are taking their listings down. Without swift and substantial intervention, all REALTORS and the consumers we serve will soon face a market where:
- Getting a mortgage, small business, or short-term loan becomes extremely difficult, even for good credit consumers and businesses.
- Consumer and business bankruptcies rise significantly, as refinancing options are shut down.
Lines of credit are reduced and interest rates on personal and business credit cards rise, adding to the burden on families. - Consumer and business spending declines, further depressing the economy.
Unemployment increases significantly. - Budget deficits increases noticeably due to declining revenue collection at all levels of government."
So it's the old can't-live-with-it-can't-live-without-it conundrum. But in this particular case, there is a very likely outcome for we taxpayers, and that is that by shelling out our tax money from the Treasury to assist banks and ease up credit constraints, it is possible if not likely that we will MAKE money on this deal. After all, the United States has a limitless ability to capitalize on the positive energy of our great citizens and move forward quickly.