If the bailout sounds like a lot of money, that’s because it is. What else it could buy? How about health insurance for everyone, or fixing all the roads and bridges?
By Forbes.com
Wall Street’s crisis is about to become Main Street’s crisis, as bank credit freezes and loans dry up. The government’s fix: $700 billion to buy up the bad loans choking the system.
It’s a monster plan, but there’s little choice, according White House and Federal Reserve officials. Though much of the money may return to the nation’s coffers over time as the Treasury sells off the mortgage-backed assets it will purchase, the bailout will severely limit what the government can afford to spend on health care, energy, infrastructure and education in the years ahead.