Another Bank Bailout Plan

Bailout Plan: $2.5 Trillion and a Strong U.S. Hand, an article written by Edmund L. Andrews and Stephen Labaton of the New York Times, about the Treasuries plan to rescue banks. An unsuccessful proposal of $2.5 Trillion Rescue Plan presented by the new Treasury Secretary proves to be a tough bid. Timothy F. Geirthner presenting what has not been seen by the government since the 1930’s, a plan to flood the market place with money to help banks begin lending again. In doing so, the government will be more involved in the markets, regulating how the banks will lend money, and forcing the banks to become more transparent.

The Senate disapproves of this plan on the bases that the plan is not specific enough in the details. Three major parts of the plan have the least amount of details describing how this money will be put to use, the details of how it will regain credit and how it will turn the market around. Paraphrasing the President, “Wall Street is looking for an easy way out from this downward spiral, but with all the damaged made to the national and world markets; it will not be an easy road to recover from.”

This article puts the bailout into perspective. A good way to see where this economy is heading, knowing the mind set of the new head of the Treasury Department and his administrations planning scheme. The Senate is being careful of what they approve. With all that has gone wrong with the banks, it’s in their best interest to insure that any plan that comes to them, better have some strict binding regulations with a clear objective. If you care about how our tax dollars are being utilized, this is a good article to read.

http://www.nytimes.com/2009/02/11/business/economy/11bailout.html?_r=1&ref=politics