Economy

Our economy is in bad spot right now. The government is spending lots of money on the war in Iraq. I believe we should be supporting the war and that we should have went to war when 911 first happened. But now we are spending money and part of that is ending up in the hands of the Iraq people that are fighting us. The other reason the economy is the way it is, is because we have people with big businesses that do not know how to take care of there billions of dollars. Now they expect the hard working middle class to bail them out.

Sept. 14th the Lehman brothers were on the brink of collapse and they scrambled for a buyer. Sept. 15th AIG hit with a downgrade needing 85 billion bailout for AIG. Sept. 17th gold rose 70$, oil rose 6$. The Dow dropped 450 points by the end of the day. Sept. 18th central banks around the world to invest a total of $180 billion in global financial markets. AIG was tossed out of the Dow Jones industrial average and replaced with food giant Kraft. Sept. 19th Treasury Secretary Paulson outlined the governments plan to put up hundreds of billions of dollars to help stem the crisis, saying ''' the financial security of all Americans... depend on the our ability to restore our financial institutions to a sound footing.''' Sept. 20 administration asking for $700 billion to buy troubled mortgage assets and get the financial system flowing again. Sept. 21 Pelosi said ''' we will not simply hand over $700 billion blank check to wall street and hope for a better outcome.'''Sept. 22 massive federal bailout that was greeted with relief on Friday sending the Dow up 369 point. Sept. 24 debate about the bush administration's proposed $700 billion bailout raged on. Sept. 25 Washington mutual collapsed late Thursday night marking the biggest bank failure in history. Sept. 29 the house of representatives voted down the $700 billion financial bailout plan by a 228-205 margin. the Dow plunged 777 points its largest one-day point drop ever.

The $700 billion dollar bail out plan was the first bail out plan. It did not work because there were not enough regulations for the big businesses and the republicans didn't give enough support and the tax payers would have to pay it back. The billion dollar bail out that was before congress is now passed to bail out the big businesses.