Sep 22, 2008

Tensions Are Rising Over The Biggest Financial Bailout In History

Congress is getting ready to vote on the 700 billion dollar bailout package this week, and some Democrats are not so sure they want to go along with it.

Apparently the Democrats want something in return for going along with the plan. What they seem to want is for a housing component to be added to the bailout bill and they want assurances that President George W. Bush will not veto a second economic stimulus bill.

Many analysts are saying that the moves taken by the Fed last week enabled the U.S. to avoid a "financial Armageddon" least for now.

In a very dramatic move that hasn't gotten that much attention, the Fed will now be supervising Goldman Sachs and Morgan Stanley. Our financial system has changed forever it appears.

So is this bailout program going to be good for American taxpayers?

Well, Treasury Secretary Paulson says that even foreign banks can use the U.S. rescue plan. So that means that American taxpayers will even be paying for bad debts from foreign countries!

But the government is telling us we better accept this bailout, because if we don't, Fed chief Ben Bernanke tells us that we will be facing a severe recession.

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