Of the $700 billion bail out plan, $250 billion of it has been used to buy equity stacks in banks. With the frozen credit system, will this be the key to the economic crisis?
Surely for conservatives to turn to this ideological plan, we must have been at the end of the rope. Free market ideas are ideal, but this shows there are times when one must intervene. The plan is to get those top banks running and lending again. While we all want to be rich quickly, I hope banks have learnt enough with the mortgage crises in how and who to lend to in the future.
Now though, we must ask ourselves what it means that the Secretary Treasury will have to approve any new dividends. Will our economy ever be the same or is this the turn to socialism?
1 comment:
Fixing the current financial system is like rebuilding New Orleans after hurricane Katrina: We pour money in and it will work for some time, but we will be hit by the flood eventually. I hope that once this bailout process is finished that there will be reforms on the whole industry.
Post a Comment