Current Event Week 2

The article I read was called "Tough Medicine for a Weakened Wall Street" which was in the Monday edition (9/29/08) this week. It talks about Treasury Secretary Hank Paulson, and the $700 Billion dollar bail out for several banks. The article tells the readers that the original intention was never to make it cost $700 billion dollars but, rather just introduce enough funds to allow the flow of capital between the markets and homeowners but, major banks recessed. Also in the article it explains the other major intention was to jump start credit markets so that prices of securities would reach their original value so that private investors could re-enter the market with their money and feel confident to put capital into it again. Another main concern that probably has brought to people in America is probably how we'll regain all this money were giving to the banks. Paulson explains that the is plan to recover all this money used in the bail out through collecting insurance premiums, demanding stocks from participating banks, and if those do not work they will implement a new tax on the financial service industries in 2014. The legislation also hopes to even turn this into some extra profit besides recovering all the money back.

After reading this article I can say that this will help our economy out a lot if it's passed but as it says in one point in the article, this is won't be a immediate change and isn't a cure for our recessing economy, it is only a matter of a step to fix our economy. It's a main focus between both our presidential candidates on this economic crisis and I hope that which ever one gets elected can help fix it! Or else...you know...we'd be kinda screwed! haha