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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (138319)	9/23/2008 5:00:51 PM
From: Kevin Rose	1 Recommendation Read Replies (1) \| Respond to of 173976

The problem is confidence. Last week, funds started hoarding cash to get ready for a run - a run that could still have busted many. No one was putting cash up for lending - a condition that would cause many solvent businesses, who rely on daily credit, to fail. Also, as seen in the Great Depression, a run on shaky banks causes a run on other, more solvent banks - with the same result. Once those institutions are dead or crippled, businesses fail because the life blood has dried up. Other dependent businesses fail, and the dominoes fall all around. The trick is to put up the smallest possible bailout that, regardless of its real effect, restores enough economy to keep the blood moving.