Ethics Article Paper Ã¯Â¿Â½ PAGE Ã¯Â¿Â½1Ã¯Â¿Â½
Current Economic Financial Crises
The current financial crises is so bad that the government has purpose a $700 billion bill that would authorize would authorize the treasury to buy up toxic assets paralyzing the financial system. The Democrats are against the bill, which has cause the bill to fall twelve votes short of passing the bill. The government decision has an effect on us and will also have one on our children. The $700 billion dollar bill that the government wants to pass will not only effect us now, but it will also effect us in the future especially our children who will have to pay for the bill either by increase in taxes or increase on products
The government has started taking a number of steps to attack the crisis. These include helping homeowners to refinance into more affordable mortgages; cutting the target for the federal funds rate; unveiling a plan to support the market for commercial paper; and offering government insurance for money market mutual funds.
The plan will authorize the Treasury to buy bad mortgage-related investments from finance companies, unfreezing the credit markets by freeing up banks and finance firms to lend once again. The sharp drop in commercial lending lead the Feds to announce an unprecedented program to have the central bank start to buy the paper, a move that essentially will have the Fed lending money directly to many major companies For investors, commercial paper was considered a very safe investment to purchase, even if most of it was backed by little more than the company's and banks good reputation. The strength of the firms selling the paper meant it could be easily resold.
Since the mid-September collapse of Lehman Brothers sparked the...