Oct 03 2008
Bailout is law
[Money]
After two weeks of contentious and often emotional debate, the federal government’s far-reaching and historic plan to bail out the nation’s financial system was signed into law by President Bush on Friday afternoon.
“By coming together on this legislation, we have acted boldly to prevent the crisis on Wall Street from becoming a crisis in communities across our country,” Bush said less than an hour after the House voted 263 to 171 to pass the bill.
The House vote followed a strong lobbying push by the White House and other supporters of the bill. The House rejected a similar measure on Monday - a defeat that shocked the markets and congressional leaders on both sides of the aisle.
The law, which allows the Treasury Secretary to purchase as much as $700 billion in troubled assets in a bid to kick-start lending, ushers in one of the most far-reaching interventions in the economy since the Great Depression.
Read more here.
[From me]
My history with money has never been good. So I have no idea if this is a good deal or not. I mean, CEO’s are making record salaries and bonuses when they are losing money! How can that be right? I tend to think is is a bad deal only because who is going to bail me out if I get in a financial crisis? Well, I’m in one now. So if I can’t pay my house payment or my house doesn’t sell before we move in December will they bail me out? :)
What do you think?
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3 responses so far
There goes free market society? This sounds more and more like socialism or… Something entirely similar yet totally different. As opposed to a relatively softer landing (the market would have corrected itself) we are setting ourselves up for a harder crash in the future.
When the average american realizes what has happened over the past few weeks there is going to be some pretty serious consequences. Unfortunately the average american is not very intelligent. Not saying I am either, just making a point.
I think I am going to write a bill and present it to my senator. The “bail john morgan out bill”. I have come up with some debt in my life, and well, I think the government needs to bail me out. A million dollars should do it. These major companies made their bed… They should lie in it…
Hey John,
Could you throw old K-dawg into the that bill too?
Kevin Bussey’s last blog post..Bailout is law
This is the worst legislation in living memory.