A week ago President Bush announced a $700 billion package to bailout financial firms. The whole week the market has been on roller coaster awaiting the news of the senate approving the package. The presidential candidates Senator John McCain and Senator Barack Obama even stopped their campaigning to go to Washington for a meeting on the economy on Thursday, yet at the end at the close of markets on Friday nothing has been finalized and in fact overnight another financial giant Washington Mutual was prevented from collapsing when its assets were seized by federal regulators and a deal brokered with JP Morgan to purchase Washington Mutual for 1.9 billion dollars.
Why is the senate hesitant on using taxpayers money to bail out failing firms? Is it because if they don't protect the common taxpayer in approved the bailout, the taxpayers would lash out in the election. This financial mess is hurting everybody, the economy, the taxpayer, the home owner and the seniors whose portfolios have been eroded by the downturn.
So the rest of the world awaits for the outcome of the talks that will carry on over the weekend. On Monday will the investors breath a sigh of relief or will they watch the markets tumble yet again?
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