How will the $ 0.7 trillion will be used?

Paulson / Bush are asking for 700 billion. That is ~ 9 AIG bailouts. Will there be a public disclosure of what firms, how much, etc., prior to approval?

. . . . . and will that be the end of it?

Does anyone feel that this might be a ploy to cripple the next Pr, by pre-spending all discretionary funds, prior to the election?

6 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Most economists see it as a necessary evil. Public disclosure is required since public money is being used. In order to divert a global economic crisis, I see it as necessary. Of course, 700 billion is a lot of money!

    I think that this isn't necessarily a "ploy," since there are very little alternatives, but you may be correct that this will hurt the next president.

  • Anonymous
    1 decade ago

    The $700 Billion will be used to create a "Resolution Trust Corporation" type entity (similar to the early 90s) that will be a holder of many bundles of bad mortgages. Hopefully, with the system clean again, the continued extension of Fed lending credit facilities, and low interest rates, the high inventory of homes can be mopped up (yet it will still take 2-5 years to bring the average inventory down to the historical norm of 5 months or so of inventory).

    By the way, the $85 Billion to AIG is a government loan that will be paid back to the taxpayers (via the government) with 8.5% annual interest over two years.

    Overall, I think this is by far the best and least painful of all the options.

  • 1 decade ago

    Bush will use the $700,000,000,000.00 to bail out the liberal banking industry and prop up the low income home buyers that couldn't qualify for a house in the first place without the liberal CBC program.

    The economy is keeping Bush up at night, like failed Iraq policies before McCain's surge was attempted. Had he listened to McCain back in 2005, we would have legislation in place regulating banking today, and we would be discussing something else right now.

    McCain scored two big points when it comes to judgment. Iraq and the economy.

  • 1 decade ago

    Why would the president shoot himself in the foot? Here is why I am saying this....

    http://www.whitehouse.gov/news/releases/2007/05/20...

    There is a good chance our pres could remain in office. Doubt it? I urge you to follow the link then.

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    well i know that 3 trillion should be used to pay china. Or else...

  • 1 decade ago

    0.7 trillion, gosh, it looks so innocuous when you write it like that....LOL

    Source(s): Too tired to offer more, sorry
Still have questions? Get your answers by asking now.