Finally a bailout on a bailout!

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Major news today surrounds New York based CIT group, a major lender in the retail, garment, and fashion sector, and the federal governments refusal to give them yet another billion dollar rescue package. The federal government has drawn the line concluding that another bailout would be too risky. Last year CIT group received over 2 billion dollars from the Troubled Asset Relief Program aka TARP Funds and is now begging for more and getting the cold shoulder. Private lenders are coming to the rescue with plans to buy up CIT's roughly projected 7.5 billion dollar debt for the coming year. Lenders are planning to buy the debt for a share of the company as a whole and for now CIT's major bondholders are lending it enough money to stabilize the company while it gets its act together but not without a double digit interest rate.

So what does this mean for the people? It means another crap shoot. Finally the government is refusing to bail someone out for billions of dollars and forcing them to take responsibility and find a solution to the hole they've dug themselves. However, the unemployment rate in 15 states here in the U.S. is officially over 10% and climbing!! If CIT goes under, major retailers and fashion companies will be unable to handle paying their employees and will be forced yet again to slash thousands of jobs. We already have enough college graduates and qualified trained Americans flooding the labor pool and unemployment lines. Unfortunately yet again someone has to bail out Wall Street to save Main Street.