By Nathaniel Luce
Publication: THE TENNESSEAN
Some Middle Tennessee residents applauded the House of Representatives’ rejection of a $700 billion plan to help Wall Street firms by buying up their bad mortgage debt, while others warned of dire consequences unless something is done to prop up credit markets. Vanderbilt University management professor DAVID PARSLEY said the government probably will need to pump more money into the market to solve the problem, but he said it was probably best that the bailout plan on the table Monday fell through.”They were really asking for a $700 billion blank check. The details are pretty sketchy,” he saidWhile the economic crisis has affected some retirement accounts, right now the impact on the average person “is not that bad,” Parsley said.But without a rescue plan, he said, that could change, especially for companies that rely on short-term loans.
