Well, the bailout bill pass. Now the real quesion is, WILL IT WORK??
Lets compare this situation with the 1929 market crash. Keep in mind that we really dint know why it happen. One theory is "oversupply". At the time, Herbert Hoover was president. He believe that public confidence was the key to recovery. Or as he say " PROSPERITY IS JUST AROUND THE CORNER". Man was he wrong. So, U.S and most of the world feel into depresion.
Up next to take on the issue was Franklin Roosevelt. How dose he respond to the economic crisis, "WE HAVE NOTHING TO FEAR BUT FEAR ITSELF". Meaning that he was not afraid to try anything. How dose he help the publice with unemployment, he comes up with NRA, AAA, SSI, WPA, PWA, FDIC, TVA, CCC. Altogether, he called it "THE NEW DEAL". This deal was to improvised structure of welfare, job programs and economic planning. Well, depresion happen as way to many organzation took advantage of the new deal. There was a lot that happen from the new deal to dec. 7, 1941 that i am not going to cover. But many people like it, many hate it. The new deal didn't work for most of the people. But thank god we got into war. With mobilization, the economy boomed. This means factories open there door, unemployment vanished, inflation was checked by Gov. prices. The economic crisis, depression was gone.
So, now here we are, 2008. We have been at war for 7-8 years that most likely will never end, gas prices still above $3.oo gal., housing market at its worst, government spending out of control, investor are being carless, loans are give to people who shouldn't qualify, and now California needs $700 billion to bail out. It is hard to say. Nobody know how this bailout will work and who will most likely benefit from it.
That my 2 cents
