America in Financial Crisis

We are the richest country in the world, and yet again we are broke. How is this even possible. We all knew our economy is in bad shape, but borrowing money from other countries and getting us into debt has not crossed my mind. President BUsh has made some dumb decision but also some stratigic decisions as well. But this is something that should have never happen. First of all we are in the war we cannot afford, and we are still not getting out if it. This war has cost our country more than we could ever think is possible. The Dow Jones industrial average fell below 10,000 for the first time in nearly four years today (monday). The Federal Reserve announced today (Monday) that it will increase by hundreds of billions of dollars the money it makes available to the nation's banks. After two weeks debate, the federal government's far-reaching and historic plan to bail out the nation's financial system was signed into law by President Bush on Friday afternoon. This bail out law has a lot of people questioning the governments decision to put this into action. It also causes great concern and worry among our business leaders and overall economic state. One of the main issues is reguarding the security of our banks and the money we all have invested in them. Another concern is with social secuirty and retirement plans.

I just do not know how much more we can afford to go on like this. I am not even sure what to think about this bail out. Let's just hope it does not turn into worse.

http://money.cnn.com/2008/10/03/news/economy/house_friday_bailout/index.htm?postversion=2008100412

http://money.cnn.com/2008/10/03/news/economy/house_bill_summary/index.htm?postversion=2008100316

Comments

[Stevens Amidon]

Your information is incorrect on the Dow Jones Industrial Avg. is incorrect. The dow fell below 10,000 in early October. It has not been so low since 2004. The sad thing is, I wish it just dipped to 10,000 because it is now at about 8419.

DDN

[Stevens Amidon]

I have mixed emotions on the TARP. It can be seen as both positive and negative. It is not helping our country in the long run, only in the short run to make consumers feel more safe, and makes them feel like they can invest in the stock market, and keep their money in the banking system. But on the other hand if they did not help thousands upon thousands of Americans will lose their jobs on top of the Americans who were going to lose their jobs regardless of the bailout because of the economy.

It is sad that we are in so much debt but it does not have to deal only with the financial sector. I think it is very interesting that President Bush stated on the news that we have been fighting this war in Iraq for too long.. WOW?!?!
Have we yet to consider the amount of money we owe to China alone?

Alix Hughes