Bank bailout congress
Bank bailout congress
World is facing one of the largest financial turmoil and the root cause is the failing US economy. It contributes largely to the development of economy globally and with it giving heart aching and shocking news of big banks and financial institutions filing for bankruptcy, there is not much left to say. It just says silently that time has come when the historic financial crisis of 1930s will repeat itself. However, it can not be said that government is not trying to balance the situation. Congress recently passed a bill giving sanction to the proposal of bank bailout. There are so many problems which have lead to the development of this financial turmoil to this stage that a bailout of 700 billion US $ might not even fill the gap left by the damage of this passing phase according to many analysts. There have been loads of debate over the usefulness of this bailout and there was a mixed opinion even among the senates and the congressmen. It was though eventually decided that bank bailout is urgently required to stabilise the situation to at least an optimum level before any drastic damage initialise, if not already enough is done. Democrats have firm faith in the treasury and ensure that every step taken will not be only in interest of the Wall Street but also the Main Street and home owners. This has some how pulled back many American aggressive sentiments towards the government, but this is not final and the out come of the bank bailout is yet to be see. According to many congressmen, the step of passing the bailout was necessary to bring the confidence among the people and the global market against the devious and failing market. Banking industry needed immediate relief from the toxic assets and that is why it was necessary for the government had no other options to put the plan of action in front of Congress so that they approve of it immediately and the action can be taken for bank bailout. The time is also not right with stock market falling everyday as if they have been pushed from the cliff of Mount Everest, large number of people roaming in the streets in search of employment, Big names in any industry cutting down on employees, rise in inflation, large companies and incorporation not able to get loans for meeting their requirements and obligations for short term. Adding to all this, elections are starting soon with the election starting soon and if C Congress would have taken any ore time before sanctioning the bank bailout, thing would have leaded us to the financial doomsday, revival from which would have taken years. However, this needs to be mentioned here that this is just a speculation according to the analysis of the effects of the bailout and the planning and strategy of the government. Time is the best healer and if nothing, it will surely do something.
