Saturday November 20, 2008, the Bush administration formally proposed to Congress the largest financial bailout in U.S. history. They requested the authority for the Treasury Department to buy up $700 billion in mortgage-related assets from financial institutions in the United States.
Less than three pages, the proposal was stunning for its demands. It would raise the national debt to $11.3 trillion dollars. Staff members from the Treasury Department and the House Financial Services and Senate banking committees immediately began meeting on Capitol Hill to negotiate these matters at hand.
If you ask me, this whole plan seemed like a clever way to transfer the bad debts of Wall Street into the obligations of American taxpayers.Key Democratic lawmakers made it clear that they were interested in including assurance for a program that would help troubled borrowers at risk of foreclosure.
In research, it is said that the government needs a bail out plan to clear the financial crisis.
If there continues to be no plan at all, American consumers, homeowners, taxpayers and more will all feel the impact. The risk of steep declines in the worldwide market poses a grave risk to all Americans, especially their retirement plans, college savings for children and their access to consumer credit including auto loans.
What are your opinions about the bailout plan?
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