Everyone is wondering about the proposed bailout. You got the stock market going crazy both domestic and international. Are the American people going to be holding a big bag of nothing or will the market rebound in short order and make a profit for the American tax payer? If the financial institutions are going under what is left to make a profit on?
There are a ton of questions out there and Zogby has been asking the average American their opinion on many of them. Americans Split on Bailout
and looking for answers. What nobody seems to be noticing is Ben Barnanke clearly laid this out back in a speech he gave in July of 2008
. He noted that third party investors are causing destabilization in the market.
As you are aware, one of the key events in financial markets in recent months was the near-bankruptcy in March of the investment bank Bear Stearns. The collapse of Bear Stearns was triggered by a run of its creditors and customers, analogous to the run of depositors on a commercial bank. This run was
surprising, however, in that Bear Stearns's borrowings were largely secured--that is, its lenders held collateral to ensure repayment even if the company itself failed. However, the illiquidity of markets in mid-March was so severe that creditors lost confidence that they could recoup their loans by selling the collateral. Hence, they refused to renew their loans and demanded repayment.
Nobody is talking about who these investors are. Let me suggest foreign investors as part of the failure. We have allowed our nation to be bought and sold on the foreign market. Let me point to the one area that is our fault, the one area that we could have kept our money at home, that one thing is oil. We have allowed nations who have an interest in our destruction to hold vast quantities of our wealth. Our economic crisis has been created in our congress.
Yes our US Congress has failed to put policies in place that would save us. They have done nothing about illegal aliens and our border.
They have done nothing about opening up drilling.
They have done nothing about securing American energy.
They have done nothing about lowering business taxes in order to keep them here in America.
Bush has done nothing to effect change in these areas either. He has very little power to effect change but the bully pulpit of president can go a long way of effecting change in Congress.
Well what will spending close to a trillion dollars of our money really going to do to change this current financial fiasco? I'm still debating this one. Now is your chance to add your thoughts. Tell me how you see this huge expense playing out. Is there a chance for a financial windfall?
Labels: America, Business, Taxes