Our economics professor threw open the class to vote for or against the bail-out package. While the majority supported the package, self-styled contrarians said "we must bear the pain for a few years and not give in to moral hazard". Going with the contrarians, there could be lot to regret about. After all in hind sight everything is a mere should-have-done-possibility.
The most pressing concern that emerged is the fact that even big companies (some examples given were GE, McDonalds) are not able to borrow in the commercial paper market. Nobody is being able to lend anything other than overnight funds. So in effect the bluest of the blue-chip companies are turning blue, struggling for working capital.
The point is that the cost of money is increasing for everyone - including for those who had nothing to do with Wall Street. What will happen to municipalities for instance? Hospitals, schools are all getting affected.
Pick of the week -
This was in interesting read from The Economist dated November 1929.
Impact of crisis on the Balkans - a reuters report from Zagreb/Belgrade