Will the bailout work?

24 09 2008

So far I think there are both pros and cons to this topic – whether the government’s bailout of the finance instistutes will work or not. I still think this is a very risky and crazy move. It sounds crazy that it might actually work. Well, at least in theoretical sense, it should work. But if this bailout money be used without any restriction or supervision, the consequence could be dire. It can backfire the government later on. Risky move, but a move that might actually ease this financial crisis a little. Take a look at this article from BusinessWeek.

Bailout Squad?

Bailout Squad?




2 responses

24 09 2008

I think that it is going to take a long time to get over this subprime mortgage issue that we are currently in. I personally feel that the government should let these companies go bankrupt or let other companies buy them out.


24 09 2008

Hi, jwojdylo, I agree with you. It would take a long time for everything to actually getting better. I was a bit shocked to learn that AIG could face bankruptcy before Federal Reserve decided to step in. I quite agree with that but the vast bailout like this is very risky and, like I said in the post, could backfire the government later on.

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