Wednesday, October 1, 2008

US Bailout Plan in Quandary

It’s a pity that the financial crisis hit America today. Weeks from now are Election Day and any solution that shall be programmed by the republican administration might be understood as politically motivated. But solution is to be made to arrest the declining confidence of the world financial market and the economic stability of the United States.


A number of big and reliable American banks are in peril of bankruptcy. Stock markets are continually losing steam -although Asian and European market gained certain percentage of recovery with the latest news that US Senate may vote in favor of the bailout package. Recently, Dow Jones’ blue chip index suffered the record drop of points far greater than what it incurred after 9/11 upheaval. Wall Street, Europe, and other international market almost experienced the same fate after the news of Monday bailout plan bogged down.


Representatives of the people, particularly the majority of the republican, sensing the unpopularity and economic failures of the Bush administration and to shore up their reelection bid, delivered the negative votes on the bailout bill. The anticipated political campaign credits earlier claimed by McCain in convincing the majority congressmen for a bailout votes turned out to be a disastrous defeat and consequently added more points to Obama campaign credits.


People believe that any program or bailout plan may only serves as temporary cure and may not work in an economic situation where the numbers of days of the Bush leadership are counted before an election day. And they foresaw the futility of the economic solutions -granting the bill was approved in congress- considering the change of administration as a result of the election. The bailout system can be undertaken by a new president who will surely have a mandate to institute new economic policies.


In the meantime, nervousness in the financial crisis will continue to deteriorate in spite of the slight recovery brought about by the news of expected Senate bailout votes. But the diarrhetic stock market may soon be dehydrated and the economic internal bleeding may take a hard time to recuperate.

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