Sunday, September 28, 2008

Light at the end of the financial tunnel

We're not out of this yet? There are still pitfalls in front of us, but it appears that Congress has put together a package that will get the financial markets moving again. It is a plan that could result in the spending of 700 billion dollars, though that would happen in increments. It would eliminate golden parachutes for executives and tax heavily salaries above $500,000. For some of the loans taken over, they will be backed by insurance guarantees (as requested by House Republicans). It's not a perfect bill, by the admission of its negotiators, but it's workable.

There are lots of people angry about this, but if the market collapsed we would all be in trouble. Buying houses, cars, or just about anything would be limited. Companies might collapse sending the unemployment rate skyrocketing. So far, most of us have not been effected, but if this started to creep through the system, it wouldn't take long for things to get bad.

So, my hats are off to those who worked long and hard to bring this to fruition. It would appear that Senator's Judd Gregg of New Hampshire (R) and Chris Dodd of Connecticut (D), together with Congressmen Barney Frank (D-MA) and Roy Blunt (R-MO), did the heavy lifting. Both Obama and McCain have signalled support of a measure that they will have to shepherd in a matter of months. This is George Bush's gift to his successor -- along with wars in Iraq and Afghanistan.

3 comments:

Anonymous said...

That light is looking like the train.. today is yet another scary day on Wall Street. Think of all of this like when you are at the beach.. it gets real quite, the water is being sucked out to sea, then BOOM the big wave hits you.

The average american has roughly $20,000 in credit card debt... so that means that are living beyond paycheck to paycheck.

Pastor Bob Cornwall said...

The problem of credit card debt is an important one. While the Wall Street debacle is central, our own over extension into debt is probably even more problematic. Hopefully all of this mess will cause us to rethink how we live -- just a bit more simplicity and responsibility.

Anonymous said...

I have been guilty of "wishing" for a recession.. mainly b/c of the great opportunity it will provide for sharing/preaching the Gospel. Not that I feel you have to be poor to hear the Gospel, but simply its hard to tell people they need the Bread of Life when they are full on the junk food of this world.

Ideas like sacrifice, patience, long suffering fly in the face of an easy credit, buy it now society. Another word for this is immaturity, when we seek instant gratification. (this may also answer your intellectual post too)

Ps.. today was simply a disaster in that everyone expected one result and the opposite happened. Now everyone I know is panicked.