Part of the turmoil for business in Glendale and the nation lies in constricted credit options and decreasing liquidity options after multiple bank failures and future economic concerns, said Nancy Sidhu, vice president and senior economist for the Los Angeles Economic Development Corp.
“There is no question that there appears to be a credit crunch,” she said. “The world is changing very rapidly.”
Bush, who first floated the bailout proposal last week, said that the lifeline to Wall Street was needed to resuscitate an economy that had dipped farther into the red.
Specifically, it would have delivered $700 billion to struggling Wall Street firms that have taken on bad debt in the face of nationwide credit busts and record foreclosures.