Following the rejection of the $700 billion bailout propsal, lets look at what it could have done. The bill was designed to get financial institutions lending again by letting the federal government purchase their troubled assets.

Seven hundred billion dollars is a lot of money but it would have been released in stages, and the cost is not expected to be near the amount the treasury invested mainly because the government is buying assets that have underlying value.

Also included in the proposal was a plan created to protect taxpayers from taking too much of the weight, as well as an oversight board who would be in charge of monitoring the spending and outcome of the proposal. The plan would also help troubled homeowners receive loan modifications.

Although there was a lot of money going in to this bailout, there is even more at stake. Our financial system supports our entire economy, so although it may seem as though we are just bailing out Wall Street, we are actually bailing out the entire country and the world.

This entry was posted on Monday, September 29th, 2008 at 4:59 pm and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.