Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?What if the economic bailout package is not enough to free the locked-up credit markets? Big banks may sell bad assets to The Treasury Department, but will they loan that money to the man in the street or small businesses?
If the Paulson plan is not effective, the number of arrows in the federal government's quiver drops substantially.
The Fed has tried to save the economy with a number of rate cuts. Many analysts have thought the agency would not cut again before the election, but those many analysts could be wrong.
According to The Wall Street Journal, "Federal Reserve officials are weighing further interest-rate cuts, even if Congress passes a $700 billion rescue plan, in the face of a deteriorating economic outlook and severely strained financial conditions."
The Fed had better hurry along. On Wednesday, reported car sales figures were down over 30% for September for many auto companies. The major excuse for the problem was not gas prices, it was the inability of people to get car loans. There is absolutely no evidence that the housing or mortgage markets are getting better. Default rates on credit cards are rising. Retail sales this holiday season are likely to be pathetic.
The economy is at the stage when it is time to pull out all the stops. The window to save the consumer may close in the next week or so. That may mix metaphors a bit, but that makes it no less true.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
10-02-2008 @ 10:44AM
cautomo200 said...
Until we fix the trade deficit, especially with the cheating Chinese, there will be little hope of getting our economy back on its feet...Our factories employ our people, that pay the mortgages....It's elementary school logic!
10-02-2008 @ 11:01AM
Bob said...
This is nuts! We get into big trouble with easy credit and now these idiots are thinking about making it easy again in place of trying to fix the real problem. Everyone can not have everything anytime they want it!
10-02-2008 @ 11:15AM
doug said...
the fed reserve better keep something in reserve. if you count up all the insulation and guarantee's treasury has given the to the likes of morgan, citi, fannie/freddie, money markets, add the $700 bil, we are probably already up to 1.5 trillion.
it will end when the dollar is so diluted and scary that the world will start questioning the merit/value of holding the buck. if we get there, head for the hills.
10-02-2008 @ 1:37PM
thomas Anderson said...
We, as a nation, are on the verge of collapse. The world hates us. We are way past financially broke, we are unwilling to hold our government within the confines of constitutional law. We have a virtual dictatorship now. We have walked into a trap from which we can never now escape with out violence. Domestic enemies, not foreign, have destroyed our nation. We have been sold out. Read the book, The Creature From Jekyll Island, by G. Edward Griffin. The author clearly documents the who, how, what, why, when and where of this programmed demolition of our country. There is no hope in the republicrats. The Creature From Jekyll Island owns both parties. We have an elephant in the living room and a donkey in the bath.
10-02-2008 @ 11:37PM
Bruce Wilhite said...
Let it crash and burn. Give the Democrats something to fume about. Give the Great Leader some work to do for a change. After we work our way through it, then we can work the Demonazis over with it.
10-06-2008 @ 6:01PM
steve said...
Trillion here a Trillion there everywhere a Trillion.
Sheeple wake up. This is the end of what we know as the great American Empire.
No Empire has ever survived in history.
It's a fact that if you have more going out than coming in you will end up bankrupt.
A patch of 700 billion dollar cement on the breaking dam is a joke.
Our people that represent us in govenment are all a bunch of panicking fools.
It's time to get back to the smart thing and wise thing to do. Pull up our boot straps and get back to Constitution on Money policy and being a sovereign nation and stay with in our borders. Protect our own first. And not think we have to be an Empire to protect this country.
Back to wisdom and a sound mind.
Back to the US Constitution.