CSM on Why the Government felt it had to act

So, yes, I was against the Bailout before I was for it.
And, as a mater of fact, I was and still am opposed to the Bailout that was finally passed. Not that it matters, until Election Day, heh, heh, heh..

But Mrs. Drang, who has something to do with Commercial (that is, Business) Credit, mentioned to me that it was getting harder for businesses to get the loans they need to operate*, which is when I stated telling people that, while the Government may not have to act, it should. (Just not the way it did, but I repeat myself.)

Many are still dubious; I hope they see this article in the Christian Science Monitor.

Behind big job losses, a tighter credit squeeze
Layoffs are at their highest rate since 2003. A leaner holiday season is more likely.
By Ron Scherer | Staff writer of The Christian Science Monitor
from the October 6, 2008 edition

New York - Pink slips are now being handed out at the fastest pace since 2003 – an economic event that may have ramifications from the ballot box to the Christmas tree.

A downturn in hiring most likely means the credit crunch on Wall Street has now moved to the general economy, as business and consumers hunker down. If it were to continue at a high rate, a dearth of hiring also could mean that any downturn would be longer and deeper than expected, since employers are often slow to rehire workers. And the layoffs are starting just before the holiday season, potentially bad news for America's shopkeepers.

"Business and households are getting as lean as they can, to ride out whatever storm they have," says Joel Naroff of Naroff Economic Advisors in Holland, Pa. "If you are worried about a potential recession, you don't fill job openings."

Look: If I have money but I still can't get an auto loan, that means the auto dealers are going to be selling fewer cars, which means that the auto manufacturers will be making fewer cars, which means car salesmen and factory workers are going to be out of jobs.

Which means lower retail sales, which means retail workers will also be out of jobs.

Which means less tax revenue for the various governments, which means government workers will also be out of jobs. And don't give me the "Good, we need less government" line, because that may well include Teachers, Policemen, Firefighters, EMTs, and so forth.


*Somewhere on his blog, or in a comment on someone else's log, Farmer Frank James raised the issue of whether he will be able to get the bridge loans he neds to operate until he gets paid at harvest.

Think about it: Farmers get paid once a year per crop. They need bridge loans, operating loans, to keep going until then; more frequently, if last year's harvest was poor. (And it looks like this year will be a good one, maybe too good for some crops.)

What will we do if the farmers all go out of "business"?