Read the Bills Act Coalition

Wednesday, September 17, 2008

Cause and Effect of bailing out failed businesses

From Bloomberg:

'The casualties of continuing tumult on Wall Street will include campaign promises of the next U.S. president, whether it's John McCain or Barack Obama. The federal government has committed hundreds of billions of dollars this year to stimulate the economy, rescue failing Bear Stearns Cos. and American International Group Inc., and take over Fannie Mae and Freddie Mac. It may extend hundreds of billions more to buy distressed mortgage debt, prop up Detroit automakers and stave off recession. Those expenses, on top of a 2009 budget deficit projected to approach $500 billion, will make it hard for Obama to find money for universal health care, clean energy and early education, or for McCain to enact $3.3 trillion in promised tax cuts over eight years.'

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