The saga of the credit crisis continues to evolve in Washington and on Wall Street, and we will begin to fully realize the effects of this unfortunate chain of events over the coming weeks and months.
In the great words of Yogi Berra, "It's Déjà vu all over again." Well if it's not, it sure seems like it. Many people are probably asking, "Didn't we just go through this a few months back?" It may feel like we are on a Ferris wheel, but this time the end result of the bailout may have a greater impact on all of us in terms of available credit.
That includes home mortgages, home equity loans, auto loans and many other lines of credit that provide financial resources to all Americans.
On Monday, the markets had a dramatic reaction to Washington's failure to approve the bailout plan. Many legislators who voted "no" to the proposal were following the wishes of a very vocal group of constituents. Unfortunately, if there is no resolution on this issue the impact could be much worse on the consumer.
In our local view, Congress will come to terms with an acceptable resolution. Although we hate that we have been placed in the situation, and hate that we have to "bail out" the companies who got us in the mess, if we don't resolve this situation the end result will be much worse. As Yogi said, "The future ain't what it used to be."