As the global credit crisis enters the second week, the US Congress is still debating whether to hand a needed bailout for the US companies that started it all.
It is unbelievable that there is a possibility that faithful taxpayers might have to contribute to the debacle that is ultimately the fault of arrogant Wall Street executives and companies. The FBI is stepping in and while John McCain tries to infuse a new idea, Obama’s economic platform clicked among voters giving him 9-point lead in a recent survey. If the US Congress would give the bailout they might as well insert a condition that the executives of these companies will be able to receive no more than $100,000 yearly benefit. I think that’s fair enough 😀
Bush and his officials warned of worldwide chaos, virtually telling Congress that there is no choice or we all fall. Well, Iranian leader Ahmadinejad has openly welcomed the development and is certainly very happy with this possibility.
All are watching for the next chapter as the US economy seemed to have consumed a bottle of Chinese milk. A number of issues in Wall Street needed to be addressed soon like transparency and accountability. Unless these are addressed, it is inevitable to ask who’s next?
UPDATE: The US Congress approved a revised version of the bailout ending a worldwide economic crash. The US$700 Billion bailout features the following key points:
The US Treasury will be able to immediately buy up to $US250 billion in “troubled assets” to bailout troubled banks. At the request of the President, this can be increased to $US350 billion. Congress can veto purchases over that limit and sets a ceiling of $US700 billion.
- Taxpayers have stake on the companies bailed out
- Profits from troubled assets will be used to pay off federal debt
- CEOs/executives will not be entitled to any special benefits
- Limitation of CEO bonuses and risk potential benefits
- Recover bonuses paid on ‘false positive’ gains
- US Government could renegotiate terms of mortgages
- Increased bank deposit insurance from US$100,000 to US$250,000