Just like when mortgage lenders tried to do a few people a favor by lowering rates… People tell other people then everyone wants it… Now MA & CA want bailouts. NY is also starting to inquire. Furthermore the government has NO CLUE how to give the money. Why? They need to balance the tax payers interest with giving $$$ away. And who do they give it away to? Goldman? Morgan? Small banks? In what proportion… EXACTLY A recession is NORMAL. When Government gets involved = DEPRESSION. See their short selling ban? As stocks go down, short sellers buy stock; as they go up, they sell them. This acts as a safety for market volatility. Now that there’s a ban, volatility is through the roof. BOSTON (AP) – The treasurer of Massachusetts has asked the federal government about lending Massachusetts money under the same favorable terms it has given banks and firms during the financial crisis. Treasurer Timothy Cahill’s requests to the U.S. Treasury and Federal Reserve Bank of Boston this week were prompted by the state’s inability to borrow from the short-term debt markets, The Boston Globe reported Saturday. The financial turmoil has caused credit markets to stop lending, or to charge prohibitive rates.
Yep everyone wants to take a bite out of the crap sandwhich now.