$700 Billion Bail Out Plan

I might not be an economist but I don't think this $700 billion bail out plan is a good idea. First off, let the banks take responsibility for their actions. Just dishing out money to anyone and everyone is not a very sound business decision. Now Bush is going to bail out these guys?

Where is the $700 billion going to come from? Either you're going to raise taxes or you're gonna get the Federal Reserve to print out money. That'll lead to inflation. This bail out plan will not stop anything, rather it will compound the situation. National Post

WASHINGTON -- President George Bush appealed Wednesday night for Americans to embrace an unprecedented US$700-billion financial bailout of Wall Street, warning that its rejection by Congress could devastate the U.S. economy and have a global ripple effect.

In a prime time television speech held amid a showdown with lawmakers on Capital Hill over the rescue plan, Mr. Bush said any delay could plunge markets into a "financial panic" that would cause enormous damage to ordinary Americans.

"I'm a strong believer in free enterprise, so my natural instinct is to oppose government intervention," Mr. Bush said in a televised address to the nation.

Follow your damn instinct!....

"Under normal circumstances, I would not have followed this course. But these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence, and major sectors of America's financial system are at risk of shutting down."

The market wasn't functioning properly because the bankers weren't following fundamental rules.