The Bailout Bill Drags Down Wall Street
In a stunning development, the Dow Industrial Average plummets 777 points, even before Congress voted against it by 228-205.
What does this mean to all of us ordinary folks who depend on our paychecks or run small businesses?
How much of your spending is made via CASH vs. CREDIT?
The more credit-dependent you are, the more painful it is going to be for you.
However, even if you are a 100% cash-spending person, you will also be affected. Chances are, you probably buy groceries from a store that relies on credit.
At the same time, you might have customers that use credit to run their business, even if you DO NOT extend credit to them.
Either way, the economy is going into shock. Maybe cardiac arrest, but I do not think it is going to die from heart attack.
People will spend less on things like restaurants and cell phones, and vacations. The economy will definitely slow down, and a lot of businesses will have to close shop.
You, as a consumer, will have less choices.
Recovery from this event will be long and hard. But after we get through this; we as a society, will do much, much better.
I don’t know what Bush/Paulson/Bernanke are going to do next, but everyone should brace for a financial tornado in the coming years ahead.
Regardless of what’s going to happen - stop your credit lifestyle - and just hang on in there.