| <!-- @page { margin: 2cm } P { margin-bottom: | | | | (FHA) to refinance failing mortgages. |
| 0.21cm } --> | | | | $4 billion is for local communities to help them buy and |
| We have all heard plenty of talk, both positive and | | | | repair foreclosed homes. |
| negative, about the $700 billion bailout plan, and there | | | | $87 billion will go to JPMorgan Chase & Co to help |
| are now rumors of similar plans in the works. The | | | | them bailing out Lehman Brothers. |
| discussion dominated the recent election, and it | | | | $29 billion will go to JPMorgan Chase's for the buyout |
| continues to be a primary concern both on "Wall | | | | of Bear Stearns & Co in March. |
| Street" and "Main Street." Many people who have | | | | $200 billion will be loaned to various banks issued |
| never concerned themselves with high level economic | | | | through the Fed's Term Auction Facility. |
| issues are finding themselves writing, or being solicited | | | | |
| to write, letters to their congressmen and women in | | | | When we look at the details of where the money is |
| support of or opposition to the plan. | | | | going, it is harder to be for or against the plan as a |
| | | | | whole. Many people find certain terms reasonable and |
| But with this high level financial decision and high level | | | | others unfair. But looking at an itemized summary of |
| of potential effect on individual taxes, it is important for | | | | where the money goes can help us be more sober |
| those of us who do not spend our days reading about | | | | when we think about whether or not the plan, or plans, |
| the Secretary of the Treasury to know what is | | | | are a good idea. $700 in one chunk may initially invite |
| involved with this plan. Many people continue to | | | | fear and skepticism, but, when we see the details, it |
| wonder if investing $700 billion to rescue the U.S. | | | | makes more sense. |
| financial system, and as a result the U.S. economy, is | | | | |
| really a good idea. | | | | Personally, I would like to see a list like this created that |
| | | | | consolidates all of the bailout plans, from the past, |
| A little perspective helps us see what is really involved | | | | present, and future, into one solid plan. This will make it |
| with this plan. $700 billion is of course a huge amount | | | | easier to manage the huge amount of money that |
| of money. But in 2008 alone, the U.S. Treasury | | | | needs to be committed. And let's face it: These |
| Department and the Federal Reserve already | | | | bailouts will happen anyway, whether the Senate and |
| committed more than $900 billion dollar to bailouts. | | | | the House of Representatives approve the bill or not. |
| Since they did not all happen at the same time, you | | | | The only difference is that they will happen behind the |
| were unlikely to have heard about them, nor to have | | | | scenes and in smaller portions, and we might not even |
| realized the magnitude. There are reports that over | | | | notice it. |
| the past three years, bailouts already on the books | | | | |
| have exceeded a total of $4 trillion. But most of the | | | | I for one would like to have more transparency, and a |
| deals either went unreported in the mainstream media | | | | consolidated plan is one way to achieve it.However, |
| or you might have forgotten about them already. With | | | | before committing any money, certain key people |
| all of this in mind, $700 billion, while still huge, is not so | | | | need to be held accountable for their actions. Saying |
| unusual as it might otherwise seem. | | | | that the money will not be used for "Golden |
| | | | | Parachutes", though necessary, is insufficient. Those |
| But even if it is the timing, rather than the amount, that | | | | who put our economy in the position of needing to be |
| makes this bailout plan unique, where does all this | | | | thrown a costly lifesaver by the American taxpayers |
| money go? The new $700 billion in particular is | | | | need to be fired at the least and probably put in jail. |
| supposed to be doled out in the following amounts: | | | | The worst possible outcome is that this bailout money |
| | | | | could go to the same people who created this mess. |
| The Federal Reserve will loan $85 billion to Insurer AIG. | | | | Having a more transparent account of where the |
| $200 billion will go to Fannie Mae and Freddie Max at | | | | money goes will help us all be sure that this does not |
| $100 billion each. | | | | occur. |
| $300 billion is for the Federal Housing Administration | | | | |