After several hours of discussion, it appears that finally a deal has been reached. While this article is not specifically relevant to my blog, it part it is, as hurting the economy, hurts directly our wallets and thus hurts our personal finances. Since this has started, the financial markets have been more than ever volatile, waiting for the outcome of the eventual FED Bailout. I still have to figure out if this rescue is indeed necessary, and since we are talking about private companies who’s “chiefs” makes tons of money to run these giants, that question remains. The deal does not mention directly who will be managing these troubled companies and the exact details of the rescue plan. However, a while ago, House Speaker Nancy Pelosi announced the $700 billion accord and this hsould bring more stability to the market. In my view, this is one of the most important aspect of the bailout.
The plan calls for the Treasury Department to buy deeply distressed mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price.
Read the full article and let me know what you think about this plan. Do you support this plan? How long do think the crisis will last? Who do you think will benefit from this?