Now that the Fed has made some bold moves in its effort to shore up the fallen economy, there is worry amongst analysts and economists that are wondering if this latest fix will help or just be a short-term fix, or if it will have any real effect on things.  Many are worried that taxpayers will get upset because it is seen as bailing out rich investors and banking firms, and doing little for the blue collar worker on Main Street.  I think there is some good reason for seeing it this way.

Economist point to the fact that people are not spending, job losses still threaten the economy and the housing market is still in turmoil. Banks are unwilling to loosen up on lending, and it matters little to people how much is being done, if they cannot move forward.  Wall Street banks are not lending, and people who otherwise qualify for a loan cannot get one at this time.  Even though the Fed has made aggressive cuts to the interest rates, it matters little without liquidity.  The Fed has chopped rates a huge 3%, yet this means little - there are no lower rates for mortgages, car loans and other forms of credit.

Many people have a feeling that this latest bailout is simply a matter of the government doing all it can to help the rich while ignoring the poor.  That attitude has been what has started revolutions, folks.  And these whisperings do little to bolster confidence in an economy that is already hurting.  I agree to a certain extent that without the larger companies that handle billions of dollars we would be in serious trouble.  It makes good economic sense.  But at what price?  It seems like only months ago that people were screaming about the war in Iraq, and now what we are hearing is the state of the economy.  I don’t believe that this is a good time for a Presidential election, because who ever ends up winning is going to be handed a mess that they probably can’t fix, and confidence will slip even further.  Senator Clinton has even voiced the opinion that if the Fed can bail out large Wall Street banks, that it surely can take a billion or two and help the little guy on Main Street.  That is the best thing I have heard come from Clinton.  And it will be the focus of any new presidency for many long, hard months.