The headlines about the 700 billion dollar bailout plan were displayed dramatically on the front cover of almost every major news outlet in the country only a few weeks ago; history in the making. The largest governmental intervention in the economy since the depression. But soon the pervasive media focus shifted from that to the coming election and poll frauds, and it left many of us scratching our heads wondering what, exactly, they were going to do with all that money and how it would effect us.
The answer to many of those questions remain…unanswered. But my friend Laura Langen from Southland Title put together, in my estimation, the best summary of what was signed into law, what effects it will have in the next few years, and how those effects will ultimately impact the consumers at the end of the chain. You can read that by clicking the link below.
The bottom line is if the Fed can use the cash to free up some of the frozen credit markets, it will start to put some of the wheels of our economy back in motion that have recently come to a grinding halt. Theory and application however, as we have learned time and time again, do not always form a parallel track, and it will be interesting to see what the law of unintended consequences will have to say about it all.