On Monday, the House of Representatives rejected the Bailout 228-205, according to a story in the New York Times. Now what is the Bailout? The Bailout is the president's plan to buy the failing mortgages from the insurance companies and other Wall Street investors. Treasury Secretary Henry Paulson thinks we will need $700,000,000,000 to buy the bad loans. But he thinks that "the failure of the rescue plan could dry up credit for businesses big and small."
Many Americans think that if the problem isn't fixed soon that we might go into another Great Depression because the economy needs credit. The tumble that happened today in the Stock Market certainly supports that argument because 777 points is more than the crash that began the Great Depression (although the plunge in 1929 was bigger in percentage terms).
If the problem is a significant one then I think it should be fixed but maybe the Bailout is not the best solution. But is it as serious as President Bush says? Could he be mistaken? He was wrong about weapons of mass destruction in Iraq .
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1 comment:
Guess this should be changed now because yesterday the Senate and House both passed it. What do you think of that?
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