From wall street to main street
As people try to figure out what a government bailout of financial institutions means in their own lives, there are still strong differences of opinion about whether it’s needed.
Disputes about whether the government or free market should correct the current crisis led to the House rejection of the $700 billion plan Monday, sparking a nearly 778-point Dow Jones nosedive, the largest one-day plunge in history.
It also was what drove the market back up Tuesday.
Questions remained even after the Senate’s approval Wednesday of a modified plan that might have a greater chance of passing the House. Washington leaders and many economists say the bailout — now being called a rescue bill — is needed to avoid a potential national economic disaster.
Buried in all the hyperbole is the fact that the economy relies on credit, whether it’s for buying a car, home, store inventory, vacations or holiday gifts. Underlying that core issue is the circuitous link from Wall Street to Main Street, where some reverberations travel like a rolling wave that gathers strength.
For many individuals, this is a time to ride out the storm, waiting to see what happens, said Len Rushfield, adjunct finance professor at Pepperdine University’s Graziadio School of Business and Management.
“In spite of all the trouble, the larger part of the individual public are living their lives normally,” he said.
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