Efforts to stop the financial bleeding and shore up the economy come as the nation's retailers look at the upcoming holidays to help their bottom line, but will that occur?
Congressman Paul Ryan , who voted for the rescue package for the financial services sector, says there are still a lot of unknowns, but there's an urgent need to free up credit markets, so retailers can get credit to purchase inventory. "Right now, the cost of money for stores to get inventory on their shelves, has gone up so high, that in many cases it costs more to get the money to put inventory on your shelves, than you get in selling your inventory."
The Janesville Republican says make no mistake, we are going to have a recession. "The purpose of this rescue plan is to hopefully make it a shorter and milder rescession," Ryan says. "It will not stop a recession, because we have a massive credit crunch now. The goal of this rescue is to shorten the life of this credit crunch."
Ryan says it's important to move with haste to free up credit markets, so retailers, manufacturers and banks can get the lifebllod of the economy pumping again.