Bailout Plan

The Emergency Economic Stabilization Act of 2008 , enacted on October 3 2008 , is a law that gives the United States Secretary of the Treasury office to spend 700 billion to buy mortgage-backed securities from the banks . The law aims to purchase these supposed bad assets and hopefully restore confidence to the credit market . The law is more commonly k straightwayn as the bailout since it intends to livery the major financial institutions of the US from the subprime mortgage crisis that had reached its tipping point by September 2008 . The idea was originally conceived by President George W . Bush and Henry Paulson , Secretary of the TreasuryAlthough it is already approved , the be after met several criticism . The main criticism is its answer on the general economy of the United States . For one , the bailout would conv ey an add-on in the US calculate for 2009 which already stands at 3 .1 trillion .

This would in addition mean that the annual budget shortage of the US would further increase and may lead 1 trillion . The bailout is also criticized beca map it implies that the mistake make by the banks would now be shouldered by American taxpayers . Majority of surveys conducted showed that the American public unconnected the bailout saying that it was incorrect for the government to use taxpayer s money to save the banks which caused the problem in the first rate . It is interesting to note that the proposal was not only opposed by the public but also by economists and investors...If you hope to ge t a full essay, mark it on our website: OrderEssay.net

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