Saturday, October 4, 2008
$700 billion bailout: Will it work?
Experts differ on whether the $700 billion bailout plan will prompt banks to lend and help the economy. But even if it does, it will take time.
The $700 billion bailout plan signed into law Friday may get banks to start lending to each other again. But it remains to be seen how long that will take to jumpstart an ailing economy.The goal is to unfreeze the credit markets. Financial institutions have become paralyzed with fear and though they have plenty of cash on hand, they've been hoarding it. Without this intra-bank lending, businesses are having trouble getting the financing they need even for daily operations, much less loans for longer-term projects.
"Hopefully, this will lend a calming effect to the markets," said Joe Belew, president of the Consumer Bankers Association. "We need to take a deep breath, relax and start doing business again."
Don't expect lending to ramp up overnight, however. It may take weeks for confidence to return, experts said. Or even longer.
The centerpiece of the bill allows the government to eventually buy up to $700 billion in assets tied to shaky mortgages. Getting the bad paper off banks' balance sheets hopefully will give institutions more confidence to start lending again.
By Tami Luhby,Besides sex -- other reasons men cheat
Gary says his work as a marriage counselor inspired him to write this book. "For over 20 years, [I've been] living along with women, counseling, seeing the devastation and how overwhelming it is when they are cheated on and what it subsequently does to the children and the family," he says.
"You want to help children of divorce? I said, 'Well, let's get really down and dirty and find out what we can do to save marriages and make them better.'"
Although Gary discusses how wives of cheaters can factor into affairs, he says he wrote the book to empower women. Oprah.com: Is he cheating on you?
"It's not about blaming the wife. It can't be. I mean, cheating is ridiculous. It's wrong. And you can't justify it," Gary says. "My book is about one thing. It's really about empowering women. If I can give you knowledge that says that I could have proof that if you do certain things, you can lead your relationship to a better place, that will be much better for you as well because it's not just about stopping tragedy. It's about building a much more mutually beneficial relationship."