Bailout Still in Progress

Since President Bush announced his proposal to pump 700 billion dollars into the US financial markets to prevent more corporate bankruptcies, Treasury Secretary Paulson and Federal Reserve Chairman Bernanke have begun a heated debate within the Senate to discuss the possibility of such a dramatic boost to the US Financial Markets. Paulson remarked on the current economy saying: "You know, I share the outrage that people have," said Paulson. "It's embarrassing to look at this, and I think it's embarrassing to the United States of America."

Ultimately, Paulson and Bernanke have proposed that the US Treasury buy troubled assets of companies on Wall Street and other firms at a discount and sell them for a profit. The plan could work, but several Senators --especially Senator Chris Dodd D-CT-- are skeptical of the effectiveness of such a large bailout that would come at the expense of the American taxpayer. Ultimately, a decision has yet to have been released in the Senate.

Personally, I feel that such a plan must be looked over extensively purely because of its cost. Bernanke and Paulson must communicate clearly the effectiveness of this bailout, and convince not only the Senate, but the taxpayers of this plan. Government can't simply throw this amount of money at the banking industry without a careful analysis of how this plan will be effective.