BAIL OUTS

Bail outs

Bail outs

Introduction

An entire planet in a veritable state of panic. A worldwide economic crisis that affects almost every human being on the planet. A stock market that fluctuates, oscillates, and takes another nosedive every time we turn on the nightly news. Major corporations, the foundations of Americas economic strength in the world for decades have begun to falter, some have even fallen entirely. AIG, General Motors, Chrysler, Home Depot, Caterpillar, Merrill Lynch, Fannie Mae, Freddie Mac, corporations considered too large and too networked within the web of the world economy to ever fail, have.

Credit has been virtually frozen by banks and lenders because of almost an entire decade of predatory lending practices by less than responsible financial institutions like Bank of Wachovia.

As a result, average Americans cannot obtain mortgages for new homes, small business owners cannot get credit for the purchase of products and materials they need, and more and more people everywhere have either had to take a pay cut, a voluntary leave of absence, or had their salaries frozen in order to help do their part to stem the tide in the hope that the world economy will not come to a screeching halt.

Discussion

The federal bailout of big banking and the automotive industry has set off a cascade of requests to the federal government for funds. The United States school systems are facing over $350 billion budget shortfalls, prompting states to ask for their money from Uncle Sam. The pornography industry has even asked for money, a projected $5 billion. Where is the line drawn? Whose was at fault anyway? Was it the American consumer and his need for all things material? Was it the housing bubble that did not seem to have a bursting point? The total tax dollars spent have already amounted to an astounding $9.7 trillion, enough experts say, to pay off 90% of home mortgages.

Before the bailout businesses went into debt to the near downfall of the U.S. financial institutions. Only responsible and ethical management of these facilities will heal the rift created by the tumultuous underpinnings of the fiscal and ethical ineptitude displayed by the managers of the financial system.

Debt is the persistent problems of the recipient nations. Trade Promotion Authority must be granted to the President if America wishes to accomplish its foreign policy goals quickly and effectively. Independent foreign investment must be encouraged, but not subsidized, by the U.S. government, for foreign investment greatly benefits both the American market and foreign markets as well. America must grant universal debt amnesty and negotiate similar amnesty from the International Monetary Fund and the World Bank, if horribly indebted nations are to be freed from their economic burdens and allowed to contribute to the world market. Current foreign aid programs must be discontinued; their cost too drastically outweighs their very meager results.

America is wondering if the economic crisis will eventually bring a recession to a depression, the answer is no. Oil has been discovered under the Great Plains states and farming and ...