This nation faces a credit crunch. Car sales are down from last year. Home sales are down. We're teetering on the brink of - or more probably have already fallen into - a recession because liquidity has dried up, the money has run out.
Last night, the Senate voted 3 to 1 to change this state of affairs by passing a bill that would not only purchase about $700 billion in bad mortgages, but added another $150 billion in personal and corporate tax cuts. Senate leaders hope that these tax cuts will persuade the House to pass the bill.
Apparently, the $500 billion the federal government was already going to borrow from credit markets was not enough. We're borrowing even more to help an economy that faces a credit shortage.
Sadly, the average person does not understand and support this plan.