You are here

The Bush Financial Crisis - Main Street will be Impacted by Crisis on Wall Street

Democrats have insisted from Day One on substantial changes to the original Bush-Paulson plan to ensure American taxpayers are protected and the interests of Main Street are addressed.  Democrats have been successful in ensuring that these priorities are included in the bipartisan plan under development:

  • Strong independent oversight and transparency;
  • Limits on excessive compensation for CEOs and executives of participating financial institutions;
  • Making sure that taxpayers share in any profits resulting from the government's help;
  • Actions to prevent the foreclosures that are driving down home values across America.

Experts Agree - Crisis on Wall Street Impacts Main Street and Wall Street:

Mark Zandi, chief economist and cofounder of Moody's
“In a sense, you're bailing yourself out. If Wall Street doesn't get help, it could take the economy with it -- and your job.” [Detroit Free Press, 9/23/08]

Andrew Lo, Finance professor at M.I.T.'s Sloan School of Management

“Without trust and confidence, business can't go on, and we can easily fall into a deeper recession and eventually a depression. It would be disastrous to have no plan.” [New York Times, 9/26/08]

Eugene A. Ludwig, a former U.S. comptroller of the currency

“Main Street is as much at risk as Wall Street. If we failed to act, the resulting loss of jobs, malaise in growth, damage to the engines of our economy and harm to the American taxpayer would be far more costly.” [Los Angeles Times, 9/21/08]

Tim Bond, head of global asset allocation at Barclays Capital in London
“A near-term solution to the crisis is urgent. Unchecked, the current crisis would turn into a self-reinforcing vortex of defaults, bank-capital contraction and deep recession within a matter of weeks.” [New York Times, 9/26/08]

John Norris, an economist and managing director with Oakworth Capital

“Nobody wanted this to happen. It ticks me off as a taxpayer but what were the options? Let the entire banking system go under? Then you might not have a job.” [CNNMoney, 9/22/08]