Archive for September 28th, 2008
Bailout Plan Reached, Now What?
Congressional leaders announced they had reached a $700 billion Wall Street bailout plan early this morning. But few details were initially released.
There are, however, reportedly, some safeguards to protect the taxpayers. The plan includes the establishment of an insurance program for mortgage-backed securities that was pushed through by House Republicans.
The concern here is that Congress rushed through this plan so quickly that there may be some key deficiencies.
Some financial analysts had insisted that it was necessary to expedite the process and get it done before Monday trading on the Asian markets. They said as the Asian markets lead, Wall Street will follow. A plan in place before trading began, they argued, stabilizes the markets.
Hopefully Congress has righted things enough that the markets will begin rebounding and the backward slide in the economy will cease. And, hopefully, there are guarantees that this financial history won’t repeat itself.
If so, the focus will now likely shift toward the issue of retribution for those to blame. The FBI is investigating. The results of those efforts are at least as equally awaited as was the congressional bailout plan.
