Last night during the first town hall meeting style debate, John McCain mentioned a plan for the current economic situation. Unfortunately, he failed to expand on the topic, but the plan did include, from what I understood, buying up the bad loans in the housing market. Come to find out, this plan will cost three hundred billion dollars out of tax payers' pockets. After buying up the bad loans they would then be sold back for a lower price, so instead of the banks who gave these sub-prime loans taking the hit, the American middle class will pay for the irresponsible decisions of the greedy financial institutions.
Personally, I believe the only just way to deal with this situation is to force the financial institutions to forclose. Though this seems only fair, it is speculated that this action would cause massive devastation to the stock market. Three hundred billion dollars of tax dollars is an unimaginable amount for the average American. Would it be necessary to waste this much money to simply slow down the innevitable? How can the government garauntee tax refunds, and how long will it take to give them?
The toxic pill has been swallowed, and there is no magical solution that will solve this chrisis. One thing is for sure, something has to be done and every American citizen needs to be involved and have a say in the actions of Congress in this crucial time.
What do you think about this plan? If you have more detailed knowledge on this plan please inform us.
It isn't 300 billion, it is 700 billion.