--- On Tue, 9/9/08, Eric <rayrena at realtime.net> wrote:
> all that. What does the bailout mean, to put it in a really
> corny
> way, in class composition terms?
[WS:] It will probably reduce the number of foreclosures and increase availability of new loans. This will most likely benefit current homeowners by keeping the housing prices high. Foreclosures would likely bring the prices further down and that would hurt mainly those homeowners who could avoid foreclosures by reducing their equity. Not a big deal if you intend to live in your house for the rest of your life, but quite a big deal if you want to sell it in the next couple of years.
The beneficiaries of the bailout are not just rich investors but middle class homeowners as well. This is, btw, an example of the capitalism's cunning ability to tie the interest of ordinary grunts to those of the financial elities. Very clever, indeed.
Wojtek