Bailout plan fails in House vote of 228 to 205

Bush's proposed $700 billion bailout plan failed in the House today. The current state of the economy has government officials scrambling for a quick fix to stop the economy from plunging even further into a recession. The proposal would essentially give the Treasury a large hand in the economic future of the United States and control over taxpayer money. Although, as an article in the Guardian pointed out, the money used in this bailout plan will not be taxpayer money it will be foreign money that the US will borrow in exchange for treasury bonds. Borrowing $700 billion for a plan that may or may not stimulate the economy has serious ramifications, such as reducing the strength of the already weak dollar.

I would like to see more long run approach to the crisis because if America, already $9.8 trillion in debt, borrows $700 billion more neither presidential candidate can fulfill their promises come January. Both candidates need to tailor their platforms to address the possibility of limited funding for their promises of tax cuts and national health care programs.

But I am glad to see that Obama and McCain are addressing the issue and focusing on the solution.