The global financial crisis and the majorly hit country was America. Many banks went down to bankrupt and now the Government has decided for a bailout package of $700 bn, as part of rescue strategy.But the recent polls conducted by CNN says that most of the Americans are not happy with the plan of country’s treasury secretary Paulson’s rescue bailout package.The Americans do not like the way he is handling his job and the bailout package announced by the congress.According to the poll 68 % disapproved Paulson’s idea.However this is better than the poll conducted on Mr.President George .W.Bush. In that poll 72 % of the Americans disapproved Bush’s administration.
The bailout package will favour the homeowners and it will definitely bring them out of their mortgages.But other than them the government is going to buy the bad assets which will not stabilize the current recession , instead it may lead to more worse condition.However the main reason behind this bailout package is to save the AIG banks from its downfall and to make the depositor to be in safe postion.The financial rescue package requires the government to encourage lenders to modify mortgages in cases where the government holds atleast a partial stake in a mortgage-backed security. And in cases where the government buys loans directly, it may modify the loans on its own.
The markets are going down day by day in United States and economists say the election would be the best way to solve this crisis.The senator Biden has said that if Obama is elected as President of America, then he would be tested in solving this crisis.Thus the politics is getting into the markets as well.With 12 days for election ,hope there should not be any more down in US markets.The main reason behind this crisis is the anxiety prevailing with the investors in America.Wish a speedy recovery to the global economic crisis.