The $700,000,0000,000 Bailout

Today the $700 billion dollar bailout of the financial industry was passed by Congress to be signed by President Bush. So was it a good idea? After researching the subject I believe so. When I first heard that President Bush proposed this bill I thought he foolish for making this suggestion. I thought this would be the biggest mistake of his presidency. George Bush is a Republican, and his few supporters are mostly Republicans. What is one of the basic principles installed in Republican ideology? Less government involvement. This went against everything that those Republicans believed about how the government should be run. At the time I personally didn’t think we should do it.
Then I began to notice something. My stocks were losing (mostly, haha) and gaining in large amounts, and by large amounts I mean 15%-20% everyday (The bulk of my stocks are in the financial industry). The market became very volatile. Then banks started closing and declaring bankruptcy, foreclosures sky-rocketed, and frankly our economy was heading for a MAJOR recession. So what was the country going to do? After looking at all options it appears that passing this bailout was in fact the best option. Here were the three most plausible situations to fixing the economic crisis;

The first option was for the government to do nothing. This fits the Republican ideology, let the economy fix itself. As news got worse, I realized that should the government do nothing it would probably end in a very long, very deep recession that would spell disaster for our country.
The second option was to give the money to the people. This fits the democratic ideology, and was also not the right answer. A medical analogy of this type of bailout would be like treating the symptoms not the disease. The financial industry would collapse leading to a very long very deep recession (a pattern seems to be emerging).
The third and final possible option was to bailout the financial industry. Democratic Ideology proposed by George Bush (go figure, I believe that is an oxymoron). As much as I don’t like this, it is the lesser of the evils. The government has control, which is bad, but it stabilizes the financial industry. It leaves the fundamentals of the economy strong. Due to the sub-prime mortgage meltdown a recession is inevitable, but with the fundamentals strong it would be shorter and lighter. Plus, if the government plays it’s cards right they could make 3-4% of $700 billion dollars (you do the math).

The reason I wrote this article was to try and reassure you, the American people that this bailout of the financial industry was in the best interests of our country. To be honest I really don’t want to support the financial bailout but unfortunately it is our best option. I’m sure you’ve heard the phrase “the lesser of the evils.” Only time will tell whether the financial bailout was the proper course of action, but as of now I think we are going in the right direction.