Jason Chan
Essay1 English Composition 1000C
The Crisis Bailout Plan
Cover Note
When I started to write this essay I had a lot of writer’s block problems, I started out by writing a brief explanation of the crisis and introducing how it happened. Then I started having problems for the body paragraphs because I did not know how to start out the sentences for the body paragraph but I decided to finally just go along with how I start my paragraph instead of going back and changing it. It was pretty hard to find some people that actually agreed to this plan online because most people that posted up articles or their own feeling towards this plan mostly was giving off bad feedback towards the bailout plan and wrote that they should not use this plan. I would of liked to have some more response from the people that agreed to the plan and ask them why they would be agreeing whether it’s just because they support the government or why else they would like to actually agree to the plan
Outline
- Inquiry question
Is the proposal towards the 700 dollar bailout plan a wise decision or is it a bad decision that will affect the people?
- Introduction to the problem
-How and why the crisis started
-What triggered this developing crisis?
3. Supporting evidence
-Reponses towards the bailout plan by people on an internet poll on http://www.debatepolitics.com/polls/36723-how-do-you-feel-about-700-billion-dollar-bailout-investment-banks-7.html
4. Supporting evidence
-Some questions and answers by conservatives on http://usconservatives.about.com/od/corporatebailoutsof2008/f/BailoutFAQ1.htm
5. Supporting evidence
-A brief explanation of that will happen if the bill for this bailout is passed and some back-story http://en.wikipedia.org/wiki/Subprime_mortgage_crisis
6. Build up towards the thesis
- The bailout plan will not be a wise proposal
7. Conclusion
-Stating how most Americans feel
-Explanation of why the bailout plan is bad with supporting evidence
There are many crises in the world one of which is the America’s mortgage securities which currently have zero value because of the subprime mortgage crisis. The meaning zero value simply means that nobody knows how much of the securities are tied to the bad sub-prime loans meaning that we have no value for these securities at the moment. President Bush at the moment is planning to borrow from approximately 700 billion to a trillion dollar loan from China and World Banks to try and bail America out of this crisis by buying the zero value securities now and wait till the right time to resell them when they become valued. Bush believes this plan will indeed help Wall Street and Americans to get out of the crisis. Is this proposal wise and worth it or is it really just some more tension added on?
The reason of how this whole crisis started around the year 2005 to 2006 when the United States housing bubble and the default rates on ARMs (adjustable rate mortgages) started to burst. The defaults and the foreclosures in the United States sped up and accelerated the process and then triggering the crisis from last year to the present year now leading to the subprime mortgage crisis.
On an online internet quick poll posted on http://www.debatepolitics.com/polls/poll-3110-how-do-you-feel-about-700-billion-dollar-bailout.html the question “How do you feel about the 700 Billion Dollar Bailout?” 76.87% voters choose “I oppose the bailouts period. They took the risk, let them go under”, 8.21% felt that government should give “more money to help the middle class/ accountability/ regulation”, 5.97% agreed to the bailout and believes the country needed it, another 5.97% said they should take the bailout plan but give them less money, and .75% said “I have no idea what to think I will just blindly back my candidate. Some people believe that there is another way to solve the crisis without taking another huge loan added onto the huge 9 trillion dollars we already owe to other countries. Even though a majority of the minors between middle and lower classmen say no to this bailout even some conservatives are against it as well, in an online article on http://usconservatives.about.com/od/corporatebailoutsof2008/f/BailoutFAQ1.htm from one of the questions and answers it states “Conservatives, for the most part, oppose vehemently any kind of welfare state — and, as Newt Gingrich says, the proposed bailout plan amounts to nothing more than corporate welfare for the rich.” , even Newt Gingrich a former speaker for the house despites the plan because he believes it will not help the country but instead it will only help the rich get even more rich.
Although there are a lot of people that disagree to this bailout plan, some Americans and politicians agree to it and say it is not to make themselves rich or what not but instead it will protect American tax payers. The politicians believe that if they used the 700 billion dollars or the 1 trillion dollars on bailing out Wall Street they believe that they can somehow “solve the crisis”. The plan was to purchase all the old securities and mortgages from financial in situations whose minimum amount would add up to 700 billion dollars to keep the economy running, the plan also wanted to ban short selling of financial stocks as it was mentioned on http://en.wikipedia.org/wiki/Subprime_mortgage_crisis . This plan has many factors that are good and bad for people because if they ban short selling of financial stocks than that means that middle and lower class people can’t short sell stocks to make some extra money but it also stops it from messing around the economy.
People believe that this is not a wise choice to make and that there were better alternatives, some Americans believed that instead of just throwing money at Wall Street for making their mistake they should instead use it to pay for the homes in default and fix homes and also it would be cheaper. Many Americans had other alternatives to solving this problem and disagreed that this new bailout plan would not solve the crisis but instead just delay the process, only 25 percent of all Americans believed in this plan and the other 75 percent pretty much disagreed to it.
Was the decision the best that the government could have thought up or was it the worst decision possible? Is it really going to resolve the subprime mortgage process or was it really only to bail out Wall Street and help out the higher class in America? Most Americans assume that there are other alternatives instead of this bailout plan that would only affect the Wall Street instead of using the money to bailout defaulted homes and foreclosures. When you really look at the problem from the world’s point of view the decision is simple the bailout plan is not a very wise decision because if they were to actually put this bill into action the people would disapprove of this and complain towards the government’s actions.
Bibliography
Internet resources
Quinn, Justin. “What Do Conservatives Think About The Plan To Bail Out The Financial Market?”. About.com. http://usconservatives.about.com/od/corporatebailoutsof2008/f/BailoutFAQ1.htm
“How Do You Feel About The 700 Billion Dollar Bailout For Investment Banks?” http://www.debatepolitics.com/polls/36723-how-do-you-feel-about-700-billion-dollar-bailout-investment-banks-7.html
“Subprime Mortgage Crisis”. Wikipedia. http://en.wikipedia.org/wiki/Subprime_mortgage_crisis
