US Govt Rescue Plan - What it means ?

The US Govt has come to the rescue of the financials - here is what it means

- Govt will give hundreds of billion $ to buy bad debt/mortgages the financials are stuck with. That means that mess is as big as most thought (1 trillion $)

- At what price the bad debt will be bought is not known - unclear

- Will use Tax Payers' money to fund this bail out

- Also will use the $50 billion Exchange Stabilization Fund created to protect the $ - They need all the money that they can

- Can print extra $ ? Dollar to fall ?

What it means for US citizens

- May get home loans again ;-) - would anyone qualify for such a loan anymore

- You are screwed, because there is not going to be any CHANGE - be it from Obama or McCain - they are gonna tax you higher for sure

- Temporary relief - many can still get to keep their jobs

- Interest rates won't come down - because your govt has bought all this mess and they want to recover that money from the existing owners

- Paulson doesn't have a clue as of now how this plan is going to work otherwise he would have answered lot more questions


Feel free to leave a comment of what you think!