Tuesday, October 14, 2008
Banks
Treasury Secretary Henry Paulsen has a plan. He wants to inject 250 billion dollars into banks. This will help the banks and should help Americans. About half of that money will go to large banks. The other half will go to smaller banks. Hopefully this will trickle down and help both banks and citizens. If successful then banks should start to lend more money. There is a lot of controversy about this. I don not understand why. Maybe someone could tell me what is so bad about this plan.
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2 comments:
Most who disagree with this idea of injecting money in banks have a different fundemental economic view. They are those who beleive in free markets and trade which would mean that the government should never intervene in economics. Also they believe that this plan will be againts the fundemental capitalist idea and is a step toward socailism. At this state of the economy, I believe it is necessary for the government to do whatever it can to get us out of the failure we are in. In my opinion this is a good idea and we should implement it.
I think that some government intervention is necessary. How can the government not be involved in economics? They kinda print the money and tax people, and set regulations. I don't see the worst thing that can happen if the government steps in some to help.
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