Sep
30
Wall Street vs Main Street??
Posted by under For Buyers, For Sellers, General Information, Bailout
Maybe I am missing something, but I fail to see why politicians are distinguishing between “Wall Street” and “Main Street”. I am assuming this is the same as producers vs. consumers (or households). From what I remember of economics class, there is a total synergy and one of these sectors cannot survive without the other. So how would a failure on the producer side affect the consumer side? Just ask your grandparents and great grandparents who survived the Depression.In October of 1929, the stock market crashed. Many had heavily invested in the stock market which boomed through the “Roaring 20s” (sound familiar?). There was a “run” on the banks where people wanted to withdraw their savings before the banks failed, so banks shut their doors. What happened then was a downward spiral:· Jobs were lost as companies failed· Stock portfolios continued to lose value, depleting the life savings of families· Families out of work lost their homes and other possessions as they were unable to pay back loans· Without money, the consumers stopped buying goods and services· Companies that could not sell their goods and services downsized and then closedSo it seems naïve to me to say there is a difference between bailing out Wall Street and bailing out Main Street. We are in this together.I’d love to hear what you think!
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