On Monday October 13, 2008 big news hit the street. The original reasoning behind the Bailout Plan was to spend $700 billion to purchase debt that has accumulated from the mortgage crisis. The Bush Administration; however, has taken a slight detour with the plan. They said that they are going to put $250 billion into nationalizing 9 banks; this was not part of the original plan.
The Bush Administration's change in the Bailout Plan has caused a lot of commotion amongst Americans. Nationalizing the major national banks was not part of the Bailout Plan, and therefore Americans are upset that the money is not being used according to plan. As a result, the majority of people pleased with the action are members of the Bush Administration.
About Me
- gigi
- I am a undergraduate student at a well known research univeristy in the South.
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2 comments:
It is understandable that Americans would feel a bit uneasy knowing that most of their tax dollars are not been put to work as initially intended.
It should quell some worries to know that this sum has help the stock markets rise a bit. Besides several other countries are doing it too. Several european countries have injected money into their banks to ensure a healthier economy.
Unfortunately, all the money injected into the banks seemed only to have worked for a short time.
At this point, I feel this is the best plan of action our country should take. Yes, it is unclear as to whether or not the banks will use the new capital to their advantage or for the better of the economy as a whole. However, if this plan was not put into effect, there is no telling how drastic of a downfall our economy could have on top of the downfall that has already occurred. Hopefully, this new plan will give us a short term profit that will eventually turn into the rebutting of our economy.
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