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Thursday, September 25, 2008

To bail out or not!
Today US economy stands at very critical point. Major financial institutions are wiped out by bad debts and credit unavailability. This time banker's greed is given name of "Sub prime loss". It’s scary all over.


Federal agency is not left with any option but to intervene and take control of things before everything is destroyed.

US congress and treasury are discussing bail out plan worth 700bn dollar to clear this mess on street. This controversial bail out is under lot of scrutiny from various section of American society and US senators. Things are not as simple as it may sound, giving fund to ailing financial institution will not resolve everything and clear mess for once and for all.

There is no guarantee that even after putting huge burden of bail out on middle class taxpayers, financial crisis will not take its toll. Managing fund to resolve crisis and at the same time making sure that it does not make way to tainted executives bank account will be very difficult. According to unconfirmed news, top honchos from troubled financial institution have already started flexing their political muscles to get lion share of bail out money.

It will be very interesting to see, that in the process of bail out if federal treasury ends up giving funds to same people whose greed is reason behind this biggest financial mess. These people are biggest shareholders in troubled institutes and any bail will directly or indirect aid to their personal wealth.

On the other hand if fed does not act, then ailing institutions will collapse, creating havoc in financial markets across the world. Credit crunch will make getting loan even more difficult for middle class Americans.

Bottom line whatever may happen middle class is set to loose like always. Is there anyone learning a lesson out of it?

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