D’Chell Crayton
WALL STREET
MMA 301
By D’Chell Crayton
Give $700 billion to bailout Wall Street or unfreeze credit markets’ lending so people can continue to acquire loans and other positives to restore the United States’ economy?
This is just a semi gist of Treasury Secretary Henry Paulson’s bailout plan which could result in more economic turmoil.
After the bailout bill was passed this past Friday with a vote of 263-171, President George Bush said it will take awhile to see results. Since the bill has already been passed and Bush took no time in signing it, what will be the results and impact of the bill? Bush claims results will “take time to show up in the U.S. economy.”
After reading two other proposed bills, I, personally feel that there are plenty other options that could be added to better Paulson’s bill. Although the first proposed bill was declined, it was modified and now accepted, but I feel it could still be a little modified again.
Congressman Peter DeFazio proposed a bill that I see could have positive outcomes. He suggested that the FDIC implement a “Net Worth Certificate Program,” which would require bank examiners to determine the prospects of banks’ survival whereas Paulson’s plan DeFazio also submitted a “No BAILOUTS plan,” with the acronym BAILOUTS meaning “Bringing Accounting, Increased Liquidity, Oversight and Upholding Taxpayer Security.”
Also, while scanning across the “stock-injection plan” it seemed like a good idea as well. This plan would inject capital into ailing firms, allowing the government and taxpayers’ ownership share in firms equal to amount of their investment; this also means they become stockholders and owners of banks.
In agreement with Sen. Barack Obama, taxpayers should receive share gains when the economy recovers since it’s their (our) money in the first place. Taxpayers may have to pay more taxes because of the plan. Of course, jobs should be made available to those who have lost jobs considering they are receiving unemployment checks months after job dismissals. As far as healthcare, if many Americans, specifically middle and lower class Americans lose jobs that provided dental and medical benefits, they will no longer receive those benefits due to loss of employment.
Since 55% of Americans say the government should be responsible for the bailout plan, the help and opinions of others could possibly bring about new ideas for a better, modified plan.
The economy could possibly turn in the right direction if the bill would have been modified with different circumstances. Lending would be restored; more jobs and healthcare would be available. In contrast to Paulson’s plan which would not help housing due to credit availability and jobs would not be available.
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