Loan or not????????????
by Mortgage Rates on Sunday, September 26th, 2010 | 3 Comments
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Yes….and eventually we will bail me and you out also.
But it will never be that good.
That’s all say thanks to our congress.
Yes it is a loan…but it probably wont be repaid.
The bailout is intended to derive some return for the money ‘invested’ in the companies that will receive it. It is likely that we all may forget about it in 6-12 months and the money will never reappear.
The difference between this bailout and previous bailouts, is that this one was necessary to allow the world wide economy to continue running. Banks loan money to other businesses (even really small ones, probably even one you work for) for operational costs and payroll. If the banks don’t loan money, people don’t get paid, which is bad for everyone.
While a bailout of retail chains (such as Best Buy, which you mentioned, and Circuit City, which has already filed bankruptcy) is unlikely, bailouts for airlines and auto manufacturers are common because they represent a large portion of ‘American’ jobs and export revenue.
While I’d like to think we could see some return of this money in the future, things are not off to a good start, with the government refusing to disclose the specifics of its contracts with companies they are sending money to. (http://www.huffingtonpost.com/david-sirota/treasury-blacks-out-key-p_b_136030.html)