The $700 billion bailout bill went to the House of Representatives Friday afteroon and it was passed. And almost two hours after the House voted on it, the president signed it to make it official. The financial bailout plan also came with other incentives to help make it through.
The goal of the bill was to have the federal government give $700 billion to our nation’s financial sector to help restore confidence in the damaged credit markets and get relationships between businesses, consumers, and banks going again. The whole idea has had quite a shaky history in its brief lifespan as it began as a plea, moved to a beg, and more controversy ensued. President Bush spoke on it many times, hoping that the plan, an idea of his administration, would get the proper backing. Presidential candidates Barack Obama and John McCain, both made their positions known about it. It’s obviously been the talk of the nation over the past two weeks.
Now that it has been passed, is it all over? How are taxes going to be affected? Will it be enough to bailout Main Street America? How long will it take to see the impact of the $700 billion? But more importantly, after all that’s being done, is it gauranteed it work?
I’m definitely not in a position to answer those questions, I’m not an expert. But to be honest, it’s doubtful that any expert will be in a position to answer any of those questions. Our economy has not been in a position like this has been done before, therefore no one can say for certain how to solve it.
Though, the way the plan is detailed some things can be speculated to a certain degree. Taxpayers may not see a rise in taxes immediately, it could go down before they go up. This plan should help prevent a deeper recession. As far as home prices, credit markets could lower rates and make more loans available for home buyers.
Not for nothin’, but if I spent $700 dollars on something that needed to be fixed, I’ll likely need something that came with a guarantee. Our government is spending $700 billion dollars, and there’s no guarantee that this will help with the issues that our economy is facing. That in itself is the scary part.
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