Locals react to bailout

NARBERTH, Pa. - September 25, 2008 The bailout of Wall Street bankers are on the minds of many even in Ewe and I, a knitting shop on Haverford Avenue, Narberth's main street.

"I don't know what the answer is, but I do know the taxpayers should not be bearing the burden," Meredith Schnull of Penn Valley said.

For some, the bailout is a bitter pill, welfare for wealthy companies. So why is Washington doing it?

Drexel Dean George Tsetsekos says while unpalatable to some those behind the bailout argue it would benefit Main Street by freeing up credit.

"It would stabilize the lending market, it would be provide opportunities for companies to meet their payroll, therefore, there would be opportunities for people to be employed, as opposed to being unemployed. There would be opportunities for future growth and expansion," Dean Tsetskos said.

Backers of the bailout argue if taxpayers don't ride to the rescue, Great Depression type unemployment could be triggered as companies unable to get operating credit would shut down.

"The downside risk involves depression, unemployment, and no growth of various companies," Dean Tsetskos said.

Not every expert buys that dire prediction. Temple's economist Bill Dunkelberg argues there are plenty of other places to borrow money beside Wall Street.

"I think that's a very highly unlikely scenario; if you can't borrow it from the mega-bank, there are lots of other banks you can borrow the money from," Dunkelberg said.

Back at the knitting shop, the mood is still skeptical.

Should owner Diana Moro bought a bunch of unsellable yarn, she doubts Washington would come to her rescue.

"If I default on anything I owe any my vendors, nobody's coming to bail me out," Moro said.

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