Federal Bailout Not Evidenced in Economic Statistics
admin on December 18th, 2008
If you are thinking of filing for bankruptcy get a free bankruptcy review, or file yourself with our bankruptcy forms for just $19.95. Thanks for visiting!
As the US economy continues to sour, many are concerned the $350 billion the government has forwarded to aid the nation’s banks has not filtered down to the businesses and consumers needing it. In October, Congress approved a financial bailout plan for $700 billion to increase lending and stimulate the economy, however, since then very little evidence has been uncovered to demonstrate the banks has increased lending activity. In fact, the economic statistics appear to have worsened across the nation since October.
Many critics of the congressional bailout plan complained banks had used the funds for shareholder dividend payouts and to offset bank losses rather than loaning to their perspective communities. A Congressional Oversight Panel was put into place to monitor the usage of the funds, but have been unable to unveil an effective use of the funds to date, as the mortgage meltdown and increasing unemployment continues.
