The ongoing financial crisis of 2008 and 2009 will forever change the face of the United States economic ideals. Out of the ashes of double digit unemployment, trillion dollar deficits, and billion dollar corporate bankruptcies will emerge a new America. This America will be different in many ways from the capitalist country that rose to economic powerhouse status in the post-World War II era, testing the ideals of laissez-faire capitalism and limiting the power and influence of the banking system and the corporations they cater to.
Over the last year, the Federal Government has pumped in hundreds of billions of dollars in ailing corporations in order to preserve their backbone and to ensure the ripples of their bankruptcy are not felt around the world. Many can point the beginning of the current recession to the sudden demise of Lehmann Brothers, almost 6 months ago. Shortly after this, the Treasury began to pump money in at-risk corporations in the financial sector to avoid the chance of spurring another credit earthquake. Since then, $160 billion dollars, more than the GDP of some developed European countries, was pumped into AIG, $30 billion in JP Morgan, and hundreds of billions in other companies. Just recently, Feds announced that they would buy toxic assets in order to spur the credit market.
Americans should know and understand that the money pumped into any company by the US government is not given for free and has to be repaid over time. Some companies were forced to sell their subsidiares to begin the repayment process and others a large chunk of company stocks. People will see shortly the federal government dismantling unprofitable companies like a bomb expert safely dismantles a bomb. Furthermore, as the bastion for stability in the international market, the American government will. over the course of the coming years, pass laws that will limit the catastrophe caused by the fall of a single company and other statutes for lending and credit.
As the world watches, America must come out unscathed from the ashes of this devastating recession and prove that the capitalism it pioneered held its course even in the worst of disasters. In every corner of the world, heads of states truly believe America’s immoral lifestyle of excess and uncontrolled spending was the final straw that caused the fall of their own economies shortly after exports fell and credit from international lenders dried up. In order to preserve an image of certainty and continued dominance, Obama and his financial team must absolutely make drastic changes to every important economic statute and lend the way for a future of heightened government control.
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