The 700 billion dollar bailout plan has stalled. The idea was that this money would somehow stabilize the markets. And now it has been voted down, but not out. The idea of a bailout is still floating around in washington.
Stock prices bounced back after record losses but most analysists say it is because of the hope the bailout plan may still go through. America has gotten itself into a crisis and there does not seem to be a light at the end of the tunnel. It appears the only thing holding stock prices up is the thought that a bailout may still come. Personally, I say let the stocks fall. Sense when does the government have the power to take over private businesses? And the bailout.... taking money directly from the taxpayers and giving it to a private business for the good of the economy.... um..will somebody please explain to me where exactly in the constitution it says the government has the power to take from one individual and give it to another.
I don't feel that government can fix this problem. The problem was created by the actions of governemnt in the first place by setting up federally insured loans.
The U.S economy has proven time and time again that its strength lies in its ability to be flexible and bounce back from recessions. Without the bailout, several companies will go out of business, and stock prices should fall. But as businesses go under, new companies will emerge to take their place. As Stock prices fall lower and lower, eventually people will start buying up stock and the prices will go back up. I say keep government out of it and let the market correct itself.