Bailout bill fails

[jwkniska]

Originally Posted by CSC

I'm afraid this will be only a short time fix, it appears credit is tightening all around the world.

I think you're 100% correct there and actually, tightening credit in alot of situations is probably the long-term solution to the problem.
Most people now have access thru credit cards/multiple mortgages, etc. to a whole lot more money than they should have (me included... have it, but am smart enough not to use it unless necessary, and pay everything off ASAP). Alot of people think that just because they have access to credit, they can spend every last cent of it, which just gets them into financial trouble, especially if they miss a payment somewhere, as then their interest rates on everything skyrockets.

Some sort of quick fix is unfortunately going to be needed, in order for small businesses to keep going (most don't have huge cash reserves and buy most things on credit). Otherwise, unemployment's going up tremendously, due to all of these businesses closing, which would only make things a ton worse, as then, even more people will be defaulting on everything.