Bush financial rescue plan collapsed. World going down
September 29, 2008
Bush plan to ‘help’ financial market has failed. The reaction was momental.
At the moment :
S&P 500: 1 117.85 Change: -7, 84%
NASDAQ: 1 983.73 Change: -9, 14%
Oil price has dropped around 10%. But the oil is not so big problem. The prices will be held up, because the oil production will be lowered. Anyway…
USA has lost their hope? It was planned to give Paulson an immediate $250 billion to buy bad loans. So the credit flow to U.S. would be restored. Unfortunately, now the banks are on their own, and writing off other billions- is not an option anymore. If Bush hoped the tax payers will save economics, now nobody will do that.
But if we will look from another angle? Will it be really enough to cover the loans and restore economics. I don`t think so. The main idea is in ‘keeping the banks operational’ with minimal expenses at minimal price.
This will certanly not be a solution…
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