So as you may know, the US government passed the 700 billion bailout last week. Despite assurances from the government, the stock market crashed, Dow’s dropped to the 9000’s, down 30+% from the week before. Big US companies such as GM, Chrysler, AIG, JP Morgan are also on the verge of bankrupt. The US economic crisis is also affecting financial markets of Europe and Asia.
In my opinion, the bailout had no effect what’s so ever. Borrowing money and giving it to companies that are on the verge of collapse is a waste. In our current competitive financial market, existing companies must go out of business in order for new opportunities to come out.
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zh1
I am very glad to read this post. Although you are a just high school student, you care about the “big thing” of the U.S, I agree with you that the bailout is just a temporary solution, which may help the economy a little bit, today’s’ stock market looked good, however, only by this can not solve the finial market problem completely.