Monday, September 29, 2008

Comment: Will the Bailout Work?

Here's a list of the Wall Street bailouts already implemented in an attempt to stem the financial crisis:

  • $29 billion to save Bear Sterns

  • $300 billion in early loans to Wall Street firms

  • $300 billion for the Federal Housing Administration

  • $200 billion for Fannie Mae and Freddie Mac

  • $87 billion to bail out Lehman Financing

  • $85 billion for AIG, Inc

  • $50 billion to support Money Market Funds

  • That's about a trillion dollars that has not accomplished what the government promised. Indeed the situation is not said to be so dire that a $700 billion w/o oversight was originally requested within 24 hours to stop the end of the world!

    Obviously, more thought is needed in order to figure out why bailing out Wall Street firms has failed to stop the crisis, especially with millions of adjustable rate mortgages still in danger of default.