the CFRL. “Already we’ve see the damage to property values, the job losses, and cities losing their tax base. If foreclosures continue unabated, there is much more of this ahead.”
Gerald Jaynes, a member of the BE Board of Economists and professor of economics and African American studies at Yale says that rescuing homeowners is not the most efficient way to get the credit markets operating and to put liquidity into the credit market, but that an increase in the FDIC will certainly increase consumer confidence. “People have been scrambling to make sure they are covered properly,” says Jaynes.
“There aren’t better plans,” says Jaynes in reference to bailout opponents who believe congress should seek an alternative plan that would help homeowners and not the credit market. “I think it was pretty irresponsible and cowardly of the congress. They were putting their “I-want-to-be-reelected” ahead of the country. If credit dries up on Wall Street it will dry up all around the country.”
Business Roundtable, an association of 160 CEOs of leading U.S. companies, plan to hold a conference call tomorrow to discuss how the financial crisis and the status of pending legislation affect American workers and consumers as well as businesses of all sizes.