The Government Bail Out Plan - What is It?

Do you know what exactly the Bail Out Plan is? Do you know who will be affected? Or even how much it will cost?

The Bail Out Plan is a far fetched and very expansive idea the government hopes could take hundreds of billions of dollars of debt from Wallstreet in an effort to help the financial tragedy our country is in.

Henry Paulson, the Treasury Secretary , discussed the plan further Friday morning. "The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy."

Paulson was careful not to completely outline the plan's details, but did state " The government would take on billions of dollars in obligation." Officials plan to work into the weekend to decided details. House speaker, Nancy Pelosi, stated late Thursday, " Time is of the essence."

Stock markets everywhere experienced a noticeable increase after the news of the Bail Out Plan. According to CNN, not even twenty four hours after the plan was announced U.S. stocks were almost up three percent .

This is not he first time the government has tried something like this. Sometime in the nineteen thirties, the government instated Home Owner Loan Corp to refinance borrowers. Then there was the Resolution Trust Corp during the S and L Crises.

This Bail Out Plan will affect every U.S. citizen. If the Bail Out Plan doesn't work tax payers may be responsible for the debt.

But are we already paying the debt off? Isn't that one of the reasons taxes have gone up? Yes, we are, but we might end up paying more without the bill then we would with it. Is that a chance American tax payers are willing to take? That decision is still unclear, because of doubts that the plan will do any good at all. Some tax payer are worried the plan will make the debt worse.

Wallstreet stood on pins and needles awaiting the news of how House representatives would vote. The numbers on wall street mirrored the votes, dropping drastically when it did not look like the bill would be passed. When the bill was denied Wallstreet under went one of the worse decreases it has ever seen.

With the upcoming elections, this is one of the major issues that the presidential candidates are discussing. The government vows to keep trying until they resolve the financial crisis.

Sourced from Yahoo News