700 Billion Dollar Bail Out Plan

By: Amanda Price Email
By: Amanda Price Email

The Bush Administration and leading lawmakers agree to include mortgage aid and strong congressional oversight in a plan to provide unprecedented help for failing financial institutions, but jitters about the 700 billion dollar bailout plan sent stocks tumbling more than 350 points.

Even with a 700 billion dollar bailout plan being considered by lawmakers, investors on Wall Street are still worried, and it's showing. Not only did the Dow Jones Industrials drop 373 points, oil prices soared 25 dollars a barrel at one point today.

A 700 billion dollar bail out, it’s the largest since the great depression. Treasury Secretary Henry Paulson says it's what the government needs to do. “We felt this was the best way to stabilize the situation, un-clog the system so that it can work.”

The national debt could rise more than 11 trillion dollars, making future generations pay the price.

Don McNay, a Financial Columnist says, “Short term does this mean anything? No. Long term, very dramatic changes. When you start fiddling with the financial system it affects every aspect of the economy.”

There's still no firm timetable for action on the bailout plan, which will let the government buy out bad mortgages, helping large financial companies get back on their feet.

Some say it's taking away the consequences for companies making bad decisions.

McNay says, “I think if you're running with tax payer, particularly tax payer dollars involved and stock holders involved you shouldn't walk away with a yacht.”

McNay says what's happening on a national level is not necessarily affecting Kentucky the same way. “Most of the Kentucky banks did not have a lot of, own a lot of sub-prime mortgages or things that are causing this down turn.”

But McNay says there are still things you should do to protect yourself, but first, don't panic. “If you have money, it's in a retirement plan and its allocated properly, just sit it out.”

McNay also says, pay in cash if you can, even if it's a big investment. “If you get laid off and you don't have a car payment and you have a house you can afford and you don't have a credit card, you can survive just about anything.”

McNay says just don't try and out guess the marketplace.

McNay says if you have the money, it could be a great time to invest in the stock market but only if you have experience and know what you’re doing.

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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by tidus Location: hikaru, Japan on Nov 30, 2008 at 03:50 PM
    WTH this is dumb dumb dumb wowowowwo
  • by STEPHANIE Location: LANSING, MICHIGAN on Nov 14, 2008 at 10:36 AM
  • by kkk Location: tx on Oct 8, 2008 at 10:20 AM
    hey i stronngly agree with Mike
  • by Mike Location: Kremer on Oct 6, 2008 at 12:49 PM
    Wake up America... Let's take our country back!! Why should we have to pay for their mistakes. The Democrats wanted everyone to be able to have a home, so they gave out loans to people who can't afford them. Way to go USA, you rock!! Get real, why not take care of your own country and stop giving billions to countries who hate us. Money hungry pigs!!! Welcome to America, the land of the GREEDY!!!!
  • by nickolas Location: griffin on Oct 5, 2008 at 08:08 PM
    i dont see how putting the future generations further in debt is really helping anything. we are already in debt with enough countries. china being the first one dew two the stimulous package. so how will it do us any good to go further in debt now and ruinn the future generations.
  • by Lori on Oct 5, 2008 at 12:19 AM
    I would love to see everyone pull out their monies as much as possible from all the banks and put it somewhere that the banks couldn't use that money. Let the government bail them out and lets throw them back into the boiling water
  • by Lori Location: Chicago on Oct 5, 2008 at 12:07 AM
    I'm feeling sick about the whole thing. What I don't understand is why they are going to hold onto all these forclosed properties until the market goes back up, why? sell them at current market prices getting more people that couldn't afford the outrageous prices into homes and paying property taxes, instead of them sitting there wating to get insane prices on properties that aren't worth it. If yearly taxes go up, you all know they will never go back down. We have been sodimized in every which way we could be.
  • by Sylvia Location: Canada on Oct 3, 2008 at 08:30 AM
    honestly i don't see why the government is giving out that much money. it's not our fault that the banks have gone bankrupt. so i don't know why THEY have to pay for the banks fault. they should try to figure out how to solve their own problems
  • by Dan Location: MI on Oct 3, 2008 at 07:59 AM
    I think its a horrible idea, i mean, 31 years! thats a LONG time.
  • by Paul Location: Il on Oct 3, 2008 at 04:04 AM
    Before any cash is given for these busineses,all tHE CEO,S must be bankrupt.In the past when these companies recieve money from the goverment,have raised their salaries
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