It is clear that if Congress doesn’t produce a main street financial rescue plan this week, the U.S. economy, which is already in cardiac arrest, will lapse into a coma. Congress needs no bigger call to action than to see American retirement accounts, 401-K Plans and individual investment portfolios lose one trillion dollars in value in a single day.
Equity markets are gaining today only on the expectation that Congress will act before week’s end. If, instead, we have another Congressional result like that of yesterday, stocks will crash again.
It is important to remember that this is no Wall Street bailout plan for high paid corporate executives. This Congressional action will secure lending stability for small and medium sized businesses that fuel the nation’s economy.
If we don’t restore confidence and order to our economy and lay the foundation for reliable credit for small business owners, we could see an economic collapse that rivals the Great Depression.