The 110 page revised bill issuing a 700 billion dollar bill bail out in three installments will come out with winners, and of course, losers,
Wall Street, financial institutions, CEO’s, Bernakne and Paulson could all benefit from this massive bailout. CEO's of failing companies will be allowed to keep their jobs. If the bailout works as intended, it will enable Americans to get loans for cars, student loans, and the opportunity to open a credit card account. However the confidence that the bill work as hoped is very slim from those on
The losers, unfortunately, include those that are facing foreclosure, loosing their homes, or whose homes are less than what they owe. This bill will do little, if anything at all to assist them. According to an article I read on Yahoo, it will also do little to halt the slide in home values. This is said to be one of the root causes of the economic slow down.
This bill will also affect tax payers that will foot the bill. The congress made it clear during their discussions of this bail out those tax payers MUST be protected. The bill will add 700 billion to the national debt. One of the tax payer protections includes that if the bailout fails, tax payers will be compensated in full.
Proponents of the bill claim that the bill could even make the tax payers money. The reality is that very few people believe that the provisions will fix the market. The main criticism is that the bill still does not address or even solve the fundamental problems of why the financial crisis came about in the first place.
The bailout, as mentioned previously, will include 3 installments. The government will be allowed to buy billion of dollars of devalued assets. 250 billion will be available immediately once the bill is passed. The next installment will be released at the authority of the president, and the last installment may be requested by the president if the congress does not act against it.
My thoughts: I hope this bill does not pass because all it does is protect Wall Street and the Bush Administration. If our Founding Fathers were to see the mess we were in, they would be ashamed of us, and all their efforts would have gone in vain. As many protesters have been shouting on Wall Street: "You broke it, you bought it!" It's time these irresponsible companies take responsibility for their actions. Let us hope this bill does NOT pass.