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Cut the Crap and Fix the Problem

This week has echoed harrowingly close to the October 22, 1929 stock market crash called "Black Tuesday." And I, for one, am more than a little worried. As a college junior, I might still have over a year before I enter the workforce, but I still presently own stocks and mutual funds. The bankruptcy of international investment banker Lehman Brothers and the $85 billion takeover of insurance agency AIG as well as the March merger of Bear Stearns with J.P. Morgan Chase has shaken Wall Street and brought it close to total collapse. In a Friday conference call with lawmakers, Secretary of Treasury Henry M. Paulson, Jr. and Federal Reserve Chairman Ben S. Bernanke said that if a comprehensive rescue plan is not passed, the results of the recent spiraling stock market would be disastrous.


Since we are in the midst of such perilous times, it makes sense to me that our U.S. Congressmen and women would be more than willing to work together and find a satisfactory rescue plan to address our immediate needs. However, as reported by The New York Times, the rescue plan proposed by Paulson is meeting with a few obstacles. Congress is on a strict timetable (their session ends at the end of next week), but before the plan has even been assessed in detail, extra demands and requirements have already been brought up. Congressmen want to see the plan in detail; Republicans are a bit wary of the massive government step-in, and Democrats are hoping to include funds to go toward Medicaid, highways and public works. Granted, the plan is colossal and calls for a whopping $500 billion of aid designed to remove illiquid monies in the financial markets, and the Congressmen have a right to hear in detail how the plan should work. But we have already seen how the stock market can come close to completely collapsing within one week. And some of the Congressmen's demands are shocking. I am particularly alluding to the Democrats' hopes of including funds for these other projects - Medicaid, highways and public works. Stimulating these areas of the economy might help, but I hardly think now is the time to be trying to weasel in money for other areas. With Congress ending next week, and the stock market on the edge of disaster, I really hope our representatives can set aside their other agenda and deal with this one problem quickly, thoroughly and without distraction.

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