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The New York Times; By Alex Berenson
Published September 15, 2008
Over the weekend, the stock market suffered when major companies, like Lehmen and Merril Lynch filed for bankruptcy. It is the biggest single-day drop since September 11th and has people extremely worried about the state of the economy. The economy has already lost 700,000 jobs so far this year and people are worried that it will continue to get worse. The dollar is losing its value and people are not sure when the economy will straighten itself out.
After learning about the current state of the economy and stock market, I think that I can say that I am more on the Federalist side of this issue. I think that the government should step in and pull the stock market out of its current state. While we could do nothing about it and wait for it to work itself out and hope that everything gets better on its own, I think that certain things should be taken into consideration. One thing is that things could get much worse before they start to get better. I have heard people compare it to the Great Depression and question whether we are entering into another depression. I would rather not know and would rather it be fixed before it gets to that point. Also, waiting it out could cause more damage in the long run. If the government doesn't step in and it doesn't fix itself, it could get much worse and cost a lot more to fix the damage that could have been lessened and fixed before. Stepping in now could save jobs and get things back on track much sooner.
Though it would be a burden on tax-payers to solve this problem, it could be more of burden if we did not. The bankruptcy of companies like Lehmen and Merril Lynch not only affects their employees, but also their customers and stock-holders, as it has a negative effect on the stock market as a whole. An opposing argument to this could be, "Why should I pay for a company's mistakes and poor judgement?" And while I can understand that, I also think that it would be much better in the long run and would be an end to potential damage related to these companies.
I think that it would be wise to tighten restrictions at this point. I think that in the future, these companies should be more cautious about the business decisions that they make to be sure they don't put themselves in this state
again. I think that the government should also be cautious and try harder to oversee how these companies are doing. I do think that the government needs to be extremely cautious about who they bail out with taxpayer's money, because they can't do it in every instance. However, I feel that it may be neccessary in this case, to avoid a more extreme circumstance in the future.
After learning about the current state of the economy and stock market, I think that I can say that I am more on the Federalist side of this issue. I think that the government should step in and pull the stock market out of its current state. While we could do nothing about it and wait for it to work itself out and hope that everything gets better on its own, I think that certain things should be taken into consideration. One thing is that things could get much worse before they start to get better. I have heard people compare it to the Great Depression and question whether we are entering into another depression. I would rather not know and would rather it be fixed before it gets to that point. Also, waiting it out could cause more damage in the long run. If the government doesn't step in and it doesn't fix itself, it could get much worse and cost a lot more to fix the damage that could have been lessened and fixed before. Stepping in now could save jobs and get things back on track much sooner.
Though it would be a burden on tax-payers to solve this problem, it could be more of burden if we did not. The bankruptcy of companies like Lehmen and Merril Lynch not only affects their employees, but also their customers and stock-holders, as it has a negative effect on the stock market as a whole. An opposing argument to this could be, "Why should I pay for a company's mistakes and poor judgement?" And while I can understand that, I also think that it would be much better in the long run and would be an end to potential damage related to these companies.
I think that it would be wise to tighten restrictions at this point. I think that in the future, these companies should be more cautious about the business decisions that they make to be sure they don't put themselves in this state
again. I think that the government should also be cautious and try harder to oversee how these companies are doing. I do think that the government needs to be extremely cautious about who they bail out with taxpayer's money, because they can't do it in every instance. However, I feel that it may be neccessary in this case, to avoid a more extreme circumstance in the future.
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