After two tumultuous weeks in Congress and Wall Street, President Bush’s $700 billion bailout plan is final.
The bailout gives the government broad authority to buy up toxic mortgage-related investments and other distressed assets from tottering financial institutions. It is designed to ease a credit crunch that began on Wall Street but is engulfing businesses around the nation.
Bush tried to win over Americans—who were infuriated his plan to toss a $700 billion lifeline to Wall Street moguls—by saying that the entire US economy is in danger, during a rare primetime address. He also said that ultimately, without a rescue plan, the country could experience a long and painful recession.
Although the theme of the bailout is to save Wall Street and Main Street, it could be somewhat strange that many resisted the bailout plan. One of the possible reasons, as analysts said, that ordinary taxpayers are questioning why they should be made to pay for the failure of financial institutions.
The US is now at a crossroads, along with the rest of the world. IF the US collapses and enters a depression, other countries may follow. At this time, we only see $700 billion as a lot of money. However, everyone will be hoping that it will be enough to rescue financial institutions from drowning.
The whole nation, as well as the rest of the world is waiting for what will happen next. The $700 billion bailout plan is historic not only because of its worth. It is historic because whatever the outcome will be can change the economic course of other nations. (www.asianjournal.com)
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