Post by gretchenm on Oct 4, 2008 20:31:25 GMT -5
Eric Allie, Chicago
10/03/08
The government passed a bill that would save a number of companies in Wall Street, such as banks and mortgage companies, from going under. The cartoon shows the U.S. in an uncomfortable position (the cartoon character is Uncle Sam with the “stars and stripes” hat), which is a feeling similar to when one visits the doctor and must do something one dislikes. Millions of foreclosures on homes, bankruptcy, and less spending by Americans were factors that caused the economic recession. Companies like Fannie Mae were not regulated, and “affordable mortgages” were not always given to reliable creditors. When people did not repay their mortgages, the banks lost money, and the people might have lost their homes. The cartoon has the caption “bitter medicine”, which suggests the bailout was necessary and beneficial, but viewed negatively.
Mistakes were obviously made. In ways the government was at fault in causing the crisis, and thus it is right that the crisis be resolved and helped by them. It is the government’s responsibility to regulate finances and businesses. However, the companies are also at fault, and spending that amount of money to keep them from going under, when it could pay for things like healthcare and retirement, is too much. Loans should not have been made. One of the few positive things to come from the rescue is that Americans will not lose jobs, hopefully.
