Thursday, October 9, 2008

Impacts on the bailout???

A question remains if this will be a confidence booster, or if it will be relatively insignificant. Will this lead to banks to loan to one another. Part of the problem is banks, loan guarantees are not satisfied with many industries such as the nuclear one (Kevin). This bailout will partially go to bonds to help with stocks and various other issues. But by doing this, won't it just push it off into the future. Now granted sources say that "The economy will reach full potential by the year 2010," the tag for this is on justin ZZZ's blog under split economy (debate). So will this really save the economy? Is it the first step? Or does the economy just move in cycles that will improve? Will executives of large companies find loopholes in this?

http://www.blounttoday.com/news/2008/oct/08/money-matters-congress-passed-bailout-so-where-rec/

3 comments:

Kevin L140 said...

Right now, the bailout and its effects haven't really helped. The DOW is still crashing. The bailout is for loans & stuff, not the whole, entire economy, and its solvency is questionable.

Erik P. said...

Supposedly, the government is going to buy up bank stocks in the process of the bailout. On NPR I heard about how this could be a bad thing. People who see the government buying stock in a bank will assume that there is a problem with the bank. As a result, these people will not invest in that bank. In my opinion, throwing money at Wall Street is like throwing gasoline on a fire.

Nakul P. said...

Qinn how are u...