The US Senate has approved the US$700 billion bailout package to save the moribund financial sector from biting the dust.The contentious bill is expected to go back to the House of Representatives tomorrow for final approval by congressmen.
This is the biggest bailout in the history of America without which the economy could go under and into serious depression similar to the Great Depression of the 1930s which started with the meltdown at Wall Street on 29 October 1929 that precipitated widespread panic and the onset of a prolonged depression not only in America but throughout the world.
Chicago, 1931
Shouldn't the top billionaires in America who probably had benefited much from the troubles of the financial markets also be asked to come to the rescue?
Much of the troubles started from highly innovative and risky financial derivatives, over-extended credit,over-speculation of trading in stocks and bad financial management.Some of the top CEOs in America are undeservedly overpaid with some having pay packages running into hundreds of million.Their over-indulgence in highly speculative financial derivatives were the cause of the meltdown.
In America,the poor getting poorer ,the rich getting richer and the taxpayers getting screwed.
The financial system has gone completely kaput.The banks assets to capital ratio are diminishing every day and whether the US$700 billion is sufficient to save the sinking ship is not yet known.
The rest of the world should brace themselves for the shock waves that may reach their shores soon.
