Our government has recently proposed a bailout plan for our hurting economy. As the stock market crashed people around the country are worried about what a plan like this could do to tax payers. Gas prices are already at ridiculous prices and Americans are dreading having to pay any more money on anything. With the money market down employment is hard to come by as well as loans for those people looking to borrow money from banks ot other credit unions.
The senate overwhelmingly voted the 700 billion dollar plan in to action on Wednesday making it the biggest federal intervention in our economy since the Great Depression. They have changed the bill from the initial proposition making it clear that tax payers and businesses will be provided with protection and incentives. Americans at first were not happy about the proposed wall street bailout plan but something must be done eventually.
The revised bill incudes millions of dollars in tax breaks for middle class tax payers, $3 billion dollars for rural schools over the next 5 years. Barack Obama realizes that the bill is not perfect but he also states that "from my perspective we need to do something to prevent an economic crisis from turning into a catastrophe." After The Dow Jones Industrial Average plunged 777 points on Monday, draining $1.2 trillion off the value of U.S stocks something needed to be done. Millions of Americans lost up to 10% of their assets in one day which is not good at all.
A senator from Tennessee described this recent downfall as a "wreck in the middle of the economic highway" I think this is very suitable for what the economy is going through. If we cannot not get our economy over this wreck then what is going to happen in our future? All we can do is wait and see. Add your comment to this blog and let us know what you think about what is happening in our financial industry