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Bailout

Wall Street took not only a single haymaker, but a combination of hard hits on Sunday as two giant security firms crumbled. Multi-billion dollar companies, Lehman Brothers Holdings Incorporated filed for bankruptcy and Merrill Lynch and Company bought out by Bank of America for fifty billion dollars, caused a nerve-wrecking ordeal for Wall Street, the Treasury Department and investors. The mortgage crisis this country had been facing for the past couple years had been crushing mortgage companies and lenders for quite some time, and unsurprisingly to many for this ultimate day to come. The other concern for the aftershock of the Lehman bankruptcy are the assets of their business being sold at a liquidating price that would further damage Wall Street and would short the companies with loans to Lehman. This would cause investors to worry about the health of other investments. One of few good news is that Lehman and Merrill are not entirely abandoned. The Treasury Department of the Executive Cabinet is in the debate of lending money to help salvage the fallen Lehman. The government lend to Bear Stearns in March and had expanded their policy from banks to other major financial firms. The government also increased the amount for lending from $175 billion to $200 billion and the auctioning for the money from once per two weeks to weekly. Other banks and investment companies are contributing to a pool of money to lend to these companies in the sake of healing a portion of the damage done. This issue will very put the nation in a greater recession and those affected by it will surely have a long time to recuperate. In the immediate running election for president, the candidates are taking advantage of this issue to boast their support by addressing their solution to this pain-staking problem. Other banks and investment companies are contributing to a pool of money to lend to these companies in the sake of healing a portion of the damage done.

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