Well folks, the house passed the bill today after voting against it on Monday, following in line with the Senate vote on Wednesday. Granted, the bill is revised from the version voted on on Monday. However, it seems that the rollercoaster ride the markets went on got many in the House to change their votes. We'll see what effect this does or does not have. Most economists and Washington insiders are saying that we are without a doubt entering a recession, but many hope the bill will at least cushion the eventual fall. At any rate, you can click here to read the BBC report.
22 comments:
I really hope this helps. I for one, do not want "Great Depression II". But now since the government bought all the companies, that could be bad too. Democracy?
wow. i just had an hour-long conversation with my dad to try and understand more about our whole economic situation... never thought id have such an interesting conversation about stocks, banks, financial institutions, etc and how they all work! lol anyways, we talked about how the revised bill includes an increase in FDIC insurance from $100,000 to $250,000 (i think those #s are correct) as reassurance for tax-payers. Also, the bill includes more government oversight and accountability over the use of the $700bn than mentioned in the first bill to prevent powerful CEOs of large financial companies (ex: Countrywide CEO Angelo Mizilo for $110 mil!!) from acquiring HUGE sums of money through "golden parachutes" (a specified amount of money that the CEO can obtain whenever they leave the company) and basically cheating their companies out of millions of dollars. i think this totally makes sense, and if these types of situations as well as who is allowed to take out loans from banks is monitored, our economy will hopefully benefit in the long run (after the lines of credit are flowing again and banks gain the money to be able to give out loans, of course).
i tried really hard over the last hour or so to understand all of the things i just mentioned, so if i interpreted something incorrectly, mr. p, please correct me. but what im wondering is why the US govt didnt act upon this sooner to prevent a crisis such as this from happening?? our next leader better have some common sense and learn the mistakes of the past two administrations, or we are certainly doomed to collapse!
you see, AP World History brings families together! yeah, miss freedman, your dad has got it! your explanation was pretty much right on target. now the question as to why we are reacting now? let's just say that even two months ago, the president was saying that the economy was strong, healthy, and steady. facing the facts though, this has been a long time in coming. if you look at a post from a few days ago, i have a link to a timeline of the financial crisis. after seeing the timeline, how could anyone have said that two months ago? so i agree with your statement. without getting too political, i will say that the truth must be spoken upfront to the american people on such matters. sadly, the last couple of weeks has clearly demonstrated the the american public is very confused, because americans simply don't know when they're being told the truth and when they're being misled anymore. it's up to us, ultimately though, to be good citzens and actually DO OUR OWN RESEARCH on such matters. the truth is usually there, we just need to put the effort into finding it for ourselves and stop relying on the media to spoonfeed us.
Goodness... yeah, im keeping my fingers crossed. they said that they dont want this to start affecting communities all over the country... hasn't it already??
Honestly, i think that this whole Bail-Out bill thing... isnt really going to work. I think its more of just like a temporary thing, even though its technically a law now, But still, just becasue our House of Representatives passed abill, doesnt mean that our economy is just going to get better, It will take some time, but gradually i think it will. SO, therefore, i think pasiing this bill was an extremely good idea, becuase atleast now it sets a foundation or atleast we have made an attept...its a start.
I agree with Avni Patel. I think this think will only last temporarily. America's economy probably will not be the same after now because of the conflicts in the world and the growth of other countries. I think America should start from the base and be careful about their decisions so it doesn't become the next Depression and hope that it doesn't get any worse!!
I agree with Avni. I kinda get the feeling that this is just a Band Aid for the problem.
But what other options do we have?
perhaps china or india miss chung, but certainly not japan. japan is in decline as well, as was clearly shown by the economic crisis of the late 90s there. japan has never been able to recover this. japan also has no military since world war ii. the u.s. is the defender of japan. basically, the power of japan is only as good as the power of the united states at this point in history.
I know that the bailout plan is not temporary, it will take some time before we start seeing the effects of the plan. Only time will tell. But this is definetly not a temporary thing. As our Georgia Democrat John Lewis said, "I have decided that the cost of doing nothing is greater than the cost of doing something."
i would have to agree with avni as well. this whole bail out bill thing probably will be a temporay thing. we need to think before we act and choose what they are gonna buy next. we need to keep our fingers crossed. hopefully it isnt gonna turn out like the great depression.
FINALLYYY! they pass the $700 billion bailout plan! i thought it was never gonna happen but another great depression was going to happen. I don't know if it would make a very large impact on everything, but i just hope it at least helps. We need this to work.
ohh & as i was reading the article, i came across
" 'The bright light of accountability will protect the taxpayer,' she vowed."
yeahhh, no offense or anything..& even though i might not really get it, but that made me think that it was some weird, cheesy quote. lol
hopefully this bail-out bill will really help our struggling economy. We need it! There are so many people going out of work. It says that it will take time to see if this bill is really helping so now we just have to wait. Isn't one of like the major things that caused all this mess the banks loaning to much money out to people who would never be able to even nearly pay it back?
what were the changes that were made to the plan that got the republicans to change their votes besides to tax break?
I don't agree with the $700bn deal entirely. I don't think it's going to solve the problem. It may mask the symptoms for a while, like using cough syrup to hide chronic emphysema, but the issue ill re-emerge. This is just another dependency for the economy, just like Mr.Prill said Japan is dependent on us, our economy will become dependent and funding by the government. I'm not saying we have any other option to turn to, and I'm not saying we should do nothing, but I wouldn't say this is going to turn out good in the long run.
Well i think now everyone who has heard about this bill knows we are seriously in a crisis. I think it is a good idea, but how does anyone now it will work. before they pay so much, don't they want to make sure it is for sure going to help us out of this mess?
This is defiantly not a good long term solution, but really just a quick fix. I know this may sound stupid but where exactly is the money going?
so this wont solve the whole problem, but for the time being, it will keep the sconommy from getting any lower than it already is. (hopefully) Im glad it passed, it definatly will be something temporary to keep our feet on the ground. but the government needs to stay ahead of the game and should plan ahead on this whole thing..
its about time they passed it! i was scared for my life that we were going into another depression. but has anyone noticed that the gas prices are going down!?! i was like 'yay' when i saw it!
I know that this bill was really important for our economy, but where is this money coming from? arent we already in debt? how are we spending money that we dont have? will this money also come from taxes?
well, the plan is to buy up toxic assets. the idea is that in the end, once things have stablized, the government plans to make money when it starts selling its purchases on the market. do we have the money? well, i want you all to consider that currently we, as a country, have a debt of over $10 trillion.
i dont understand how our president can go from saying that one week our economy is healthy and strong to the next thing being almost "The Great Depression II"...does this show us that our government hides hmm everything from us? lol idk just kinda sketchy to me..
maybe we wouldve found a better solution if they had told us this way before two months ago.. because clearly, we were not "strong, healthy, OR steady". but now, we already passed the bill, so i mean, we can't take it back or anything, so what are some things we can do on top of this, to help the situation? instead of saying, we shouldnt have or we should have, because we cant change the past, and how far and out of had this has gotten..
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