Well ladies and gentlemen, the worst fears of economists are becoming the reality: the United States is officially in it's worst financial state affairs since the Great Depression, and nobody is denying it anymore. The solution proposed to the problem? A $700,000,000,000 bail-out by the government to keep the economy from completely collapsing on itself. We did talk a bit about the problem last week, so hopefully you all tuned in to President Bush's address to the nation stressing to all of us the seriousness of this crisis. Click on the following link (Bail-Out "Vital to Easing Crisis") in order to read the BBC's coverage of this story that explains things rather clearly (you can also watch Bush's address to the nation here if you didn't catch it). Also, as I've mentioned before, the BBC is great because on big news stories like this, they provide background history, time lines, etc to help you research the topic for real understanding. Click here for more in-depth background information on the Global Financial Crisis, and click here for a timeline of the situation (so many people for some reason think this just happened out of nowhere, but like anything else it's been a long time in the making and the general public has simply ignored it). So what are your thoughts on all of this?
Wednesday, September 24, 2008
A Solution to the Financial Crisis?
Well ladies and gentlemen, the worst fears of economists are becoming the reality: the United States is officially in it's worst financial state affairs since the Great Depression, and nobody is denying it anymore. The solution proposed to the problem? A $700,000,000,000 bail-out by the government to keep the economy from completely collapsing on itself. We did talk a bit about the problem last week, so hopefully you all tuned in to President Bush's address to the nation stressing to all of us the seriousness of this crisis. Click on the following link (Bail-Out "Vital to Easing Crisis") in order to read the BBC's coverage of this story that explains things rather clearly (you can also watch Bush's address to the nation here if you didn't catch it). Also, as I've mentioned before, the BBC is great because on big news stories like this, they provide background history, time lines, etc to help you research the topic for real understanding. Click here for more in-depth background information on the Global Financial Crisis, and click here for a timeline of the situation (so many people for some reason think this just happened out of nowhere, but like anything else it's been a long time in the making and the general public has simply ignored it). So what are your thoughts on all of this?
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28 comments:
wow. we are gonna go though another great depression..
and i dont see why obama would want voters now need to hear from the candidates now..i mean, sooner or later, there might not even be a good working economy for him to run...
so i like what McCain wants to do..
& this is coming from the McCain's side point of view..im on his side.
&&& i forgot to say that freakin $700,000,000,000 is a lot of money !! where did this all come from?
it's coming from you the taxpayer.
What I don't understand is what this means for us... I mean so we're just going to have to make higher taxes that some people wont be able to pay and they'll go into poverty?
this is a problem that has been in the making for a long time and one big move isn't going to make it all just go away. We have to learn from our mistakes. Sure we can bail out companies but if we do that and continue to make the same mistake what good is it? 700,000,000,000 is alot of money. I say if we are paying for this with our taxes we should have more of a say in the government, like having a say on these bills and laws that are passed through congress. Just a thought.
i heard them talking about this on the radio this morning!
it seems kinda scary that its the worst its been since the great depression. it also makes me wonder what would happen if we had another great fall like that?
but whats gonna happen when we cant get the $700,000,000,000? like alot of people are going into poverty with how high the gas prices are right now. and with a tax increase, itll make a larger percent of people go into poverty in which case we wont be able to buy our way out of this down fail.
im getting scared of how the outcomes could be for this..
Although this has been going on for quite some time, I don't think many people were worried about it enough to do something about it with the least amount of panic as possible. Now that the problem is attracting more and more media attention, people aren't reacting the correct way by instantly selling all of their stocks. Getting all worked up about this and trying to find one big solution isn't really going to get us anywhere. I think that McCain is being smart about the situation because he isn't just saying that we need to come up with a game plan to fix this; he's actually going to do something about it. Actions speak a lot louder than words. Obama has a good point that we need to save jobs and such, but stating that campagning and focusing on the election and who's to be running the show and solving the issues soon isn't really the way I think we should be handling what's going on right now. The problem has sat there too long to wait until this election is over. People need to really be coming up with a plan to fix the problem with our economy now before it becomes a total crisis.
i agree that we are going to go through another great depression. i feel that Obama talks more than his actions. I am also on the mcCain side lol .so does this mean that tax is going to get higher? the economy is going DOWN the drain especially because of gas prices and the lack of gas itself.
Is this internal conflict??? (kinda)
If outside invasion happens....0.0
It makes the formula of disaster!(or whatever you call it...)
outside invasion+internal conflict =disaster!
What do YOU think? 0.o
Since the money to bail out the companies and thing is coming from the tax payer how come we are not seeing a major increase in the taxes? would it start with a new president? how long did it take the great depression to recover? Im actually really concerned about this because i didn't think it would affect sugar hill until last night when my mom said that they were losing business.......
I definitely believe we will see, not only in ourlifetimes, but in the next couple of decades, many huge events, good or bad. Unfortunately, I think the majority of them will not be so great.
-How's our situation looking in the Middle East? Not only with the war, but with oil? Will an alternative source of energy be discovered before things get nasty?
-How's America's economy looking right now? Will we experience The Great Depression 2?
-What's the world's viewpoint of fresh water? I believe the next world war will be fought over fresh water.
I think the only reason we are still in Iraq is because we want to help Iraq and open up our opportunities to obtain oil. Do you think this battle over oil is bad? Just wait until the battle is over water. Just wait until we will be fighting to live.
miss jorgensen, so far no detailed word on how this is going to effect taxes. unfortunately, this situation is so very politicized because we are 40 days from an election, so it's hard to really get any definitive answers on this. some are saying that the american people will have foot the whole bill, some say, no, there's plenty of money already and taxpayers won't pay the full thing. i heard one thing saying that american's wouldn't see any tax increase and maybe even a reimbursement. i have only seen one clearly laid out plan so far and (this is not a political endorsement, but this is the only point by point plan i've seen) that's senator obama's four point plan, and here's what it looks like...
1) a payback plan for taxpayers if the bailout succeeds
2) a bipartisan board to oversee the bailout
3) limits on any federal money going to compensate Wall Street executives
4) aid to homeowners who are struggling to pay their mortgages.
of course, if you really want to see the details of the situation, it's really senator chris dodd that is overseeing this committee, not either of the presidential nominees
I think it would be smarter if all that money was given to the American public instead of businesses. It would be a huge sum of money that every American would receive, and that money would then go back into businesses. Also people would be able to pay off mortgages on their houses, and it would stimulate the economy. I'm sure this is much harder to do than talk about, but if the government is going to throw out a lot of money, why not give it to us?
oh, and to finish answer your question miss jorgensen, it took 10years to get out of the depression. and many historians would say it was the beginning of world war II, not roosevelt's new deal, that really got us out.
greeattttt..
no money out of out pockets.
I have just a few thoughts.........
It's funny that Obama's campaign advisers are from Freddi-mac and Freddie-may, and now that they are trying to investigate the collapse of these companies, they come knocking on the Obama Campaign.
I would venture to say the entire global economy is based on the price of the American house and oil.
Do you think maybe the foreign oil companies are raising the price of oil just to make the economy sweat a little, and to make some extra profit?
We as a nation should have been more responsible and not given loans to anyone and everyone who applied for one, so this crisis is what we get for financial irresponsibility.
I cant wait to pay off all of that debt, and im sure my children will be thrilled to know they have to pay for their grandfathers mistakes. $700,000,000,000 woohoo
if my math is correct that's about $10,000 per person. but what other solutions do we have......
wow so no matter what happens we are in trouble it seems like because if taxpayers don't have money then we will have a problem with poverty and either way that is ALOT of money that most people don't have to give towards this problem!
This situation can be a make or break to the canidates and how they respond to the situation. Whichever plan the publc find favorable will have a reflection on their votes.
Im terrified of whats going to happen to our economy when it starts to get way out of control. The great depression was horrible and no one wants that again. I also wonder like some of the people that subscribed below me what the heck is gonna happen to us???
wow the ecomomy is really messed up. i guess this is going to make taxes go up isn't it. well if it gets us out of it
WOW! i didnt realize until now how bad our economy really is. I dont really think many people are even aware of the problem and well half the people in teh US dont even know we are on the verge of another Great Depression. So, therefore i think that first of all the more of our citizens should be aware of the situatuion and second our governement should make a plan and take the right actions becuas eif not, then our economy is guna get worse.
OK I have a question- If our economy sucks so badly right now then why is Obama putting up such a fuss about canceling the debate and not wanting to do like McCain and go back to his state and try and sorth things out at home? I mean if the economy is gonna crash, wouldn't you rather be able to say that I did everything I could to stop it from crushing my home state or I kept up my prasidential campaign and let my state crash and burn? It just doesn't make sense to me.
this kind of reminds me when the taxes are laid on the peasants' backs in the classical period. the government expects americans to keep paying their taxes and the bail out to work . but what happens when more and more people start to become unable to pay ? thats whats happening . our economy is collapsing and if it does completely , its going to take way more to build it back up than it did to bring it down .
and i think obama is right in not stopping his campaign . i think its stupid that mccain wouldnt hold the debate; to me, that jsut shows cowardice. in my life time, i dont want another bush . its just a publicity stunt. obama is right when he says that the people need to hear from the person thats goin gto deal with this "mess". more like disaster . but anyway, those are my thoughts .
I think that what McCain is doing is the right thing to do. Rather than just speak words and hope that the problem will resolve he is going into action. America cannot solve this dilemma by just saying we need to fix it or even wait to fix it. We need a plan that will work. Like McCain said we can not afford to make poor choices.
WHATTHHECK!?
& Where in the world does $7 billion come from anyway!?
That's ALOTTTTT of money.
& I can't believe that this is actually happening right now.
At this moment.
I agree, where does 7 billion come from?
David Recchia
the money cones from taxes.
yeah this great depression thing is kinda freakin me out cuz i remember reading about it in like 5th grade and it seemed pretty bad... but like u always say we should rely on what we learn in elementary school or middle school... but seriously this could be pretty bad like my dad u never know(im not saying this cuz people have said anything to him about it, im just guessing) could end up losing his job cuz he works for this big business who does stuff for macys or something and if people stop shopping then he will go out of business and then we would have to live off of my mom which is a teacher, so that would basically suck
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