Government bank bailout
Government bank bailout
The government of the US has found that the only option to save the economy from this crisis is through massive bailout plans which will bailout many financial organizations from the situation of bankruptcy. The magnitude of the financial crisis is just too big and to solve this problem, government has proposed to implement various policies to prevent such crisis in future. The taxpayers will be the worst affected due to the government bank bailout plan. The total burden on the taxpayers will be close to one trillion dollars. The above said one trillion dollars is all about bailing out banks and other financial bodies. The taxpayers will be forced to buy several worthless bank investments. These investments have plagued the Wall Street for quite some time now and the taxpayers will be forced to go for those investment options. This is being done to generate enough revenues for the one trillion dollar margin. The plan has had a positive impact on the American stock market and the world markets have responded positively to this proposal. The other side or probably the dark side for this bailout plan is that the middle class taxpayers will be the worst affected. The majority of the US population is middle class citizens. The government bank bailout plan will be very beneficial for the rich banks and investment bankers. The brunt of the financial crisis has to be borne by the government and the government makes up for it with the taxpayers. The taxpayers are forced to take the burden on themselves to save the economy. However, the major flaw in this policy is that the tax payers who suffer the most are the middle class people who have to take the burden on their shoulders. They are in turn bailing out financial organizations that are mighty rich and their policies have affected the middle class a lot. Private Banks demand higher deposits and want to give much lesser money as dividends. The dividends are not up to the expectations of the investors. In that case when the government is trying to bailout banks from financial crisis, the middle class population is pushed into that zone of financial crisis. The banks should retain half of the mortgages; so that, the middle class is not burdened to a very big extent. This will help the investors and taxpayers to refinance their bills and lower their burdens considerably. The government bailout plans for banks are aimed at the common man and along with other factors the plight of the taxpayers should be also taken into consideration. The base of the economy will be strengthened if the banks are bailed out from financial crisis. The bank bailout plans will be the best possible option for any government or non government bank and they are expected to come out of it soon.