Who would have thought that the government of the United States would be so inclined to completely control the banks. Economists worry that banks need confidence to make loans to each other and to their customers. This would get money circulating in the economy. Bush followed a similar plan enacted in Britain and other European countries to buy equity in financial institutions. Bush let Europe be the ring-leader because of a fear of too much national control in the U.S. That plan includes that half of the $250 billion goes to the nine largest banks. An additional $100 billion can be authorized by the president if needed. Also, it entails that there is insurance on all deposits in non-interest banks. These moves should give the banks confidence. Bush and Paulson were against this. Fox stresses that government intervention is so great right now that the government is literally instilling $250 billion directly into the banks of America. Paulson claims that the reasoning behind this intervention is to provide businesses and consumers with access to financing.
World AIDS Day 2010
13 years ago
1 comment:
I know you don't agree with me when I say that I agree with Larison. Most of the public's decision making is based on what they hear and if they hear that there is going to be an apocalypse in whatever market then they are going to try and cut their loses quit and get out. I would also have to say that the government is only worsening the problem by giving this money. Some years down the road we are going to have this same problem.
Post a Comment