As most of you have probably heard the federal government has proposed a very large Band Aid for the US financial system. The cost to bailout the troubled mortgage sector could cost the country upwards of $500 billion. The CNN article "Bailout cost: higher than you think", explains that bailout may be a great temporary fix, but is sending the wrong message to financial institutions. The $500 billion is on top of the $500 plus billion the fed has already spent on the economic stimulus package, Freddie Mac & Fannie Mae, AIG, and guaranteeing money market funds.
This is a serious issue for our county at a time when most Americans are extremely concerned with the state of our economy. Americans should be concerned, after all our tax dollars would be funding the bailout. Like stated in the article; what type of message are we sending to the financial institutions? We are simply telling them that it is ok to be careless and reckless, Uncle Sam will bail you out.
As Americans we need to keep an eye on this continuously growing issue. It seems that the government pours billions of dollars into the system and in return only receives temporary relief.
How much more is it going to cost us and how much longer till we find a real solution?
http://money.cnn.com/2008/09/19/news/paulson.wrong.message.fortune/index.htm?postversion=2008091917
Friday, September 19, 2008
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