Boycott Watch  
October 20, 2008
Economic Talking Points:
Credit Makes a Comeback
    The biggest challenge in this economy, or so we were told, is getting credit, but that only lasted a week, tops. Car dealers first reported they can't get credit for more than half the normal applicants, and automobile manufacturers can't sell their cars to dealers as a result. Still, don't let that make you think the economy has came to a halt. Car dealers have already began to find lenders who will finance people outside the banks, credit unions are still in business because their shareholders committees only approve the best possible loan candidates, and automobile manufacturers are offering financing plans because they too want to remain in business. Yes, Americans are finding ways to get loans to keep the economy moving, and they did it without the help of the government, as the Washington bailout has not yet delivered money to anyone before businesses starting finding solutions to their own problems.

    It does not end there. Banks are starting to lend each other money again, simply because banks, just like everyone else, need to balance their books. So, at the end of the business day, if banks have extra cash on hand, they loan that out to other banks, making interest along the way, allowing banks which have dmore ollars loaned out than expected, able to make sure that loaned money is in their books, also making money on those loans.

    Overall, Americans are far more resourceful than Washington believed and Wall Street cared to admit. What we saw was panic. American consumers and business operators are moving ahead because this is what we do as Americans - we spend money to buy things people make, thus move our economy forward. In the end, the Washington bailout is a feel good measure that really won't affect the economy, as American consumers have already boosted the economy - the recovery has already started.

    Yes, we had a market correction, and that is what it was - a market correction. The stock market will come back. It always does. We just got past the point where people spent too much and everyone got excited, now that bubble is over, and we are moving on. The biggest problem we have now is dwelling on the past and not looking forward. The fact is the American economy is moving forward before any bailout plan affected any home owner, so in the long-run, the bailout is and will be found to be useless. Optimism and the American spirit are already moving us forward.

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