It’s Not a Bailout — It’s a Government Investment They Say

I’ve been hesitant to offer my opinion about the proposed $700B bailout package since the news pertaining to that plan is ongoing and constantly changing. But now that rumors are flying and I’ve had clients call in to ‘blame this on Bush’ and to complain that it dumps a massive debt directly on the heads of taxpayers, I feel the need to spell out some truth as I understand it and perhaps some more realistic scenarios. Regardless of what portion of this proposed legislation passes, I don’t think we’re heading into the next Great Depression. The biggest problems with this market the way I understand it is a lack of liquidity, the perils of bank interdependency, and a need for some new regulations in an era of leverage and risk. These are problems we can cope with as a nation with a little cooperation. Here is some clarification about this historical event:

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