The US economy

The US economy had been going down in the past years but this year we hit rock bottom. We are then left with the $700Billoin dollar recovery plan that was approved by President George Bush. Well it seems like the money is going up and now its more than the $700 billion recovery plan we had in mind. One is left to wonder how much in the long run will we spent to return our economy into shape?
The US government is spending large amounts of money to restore the economy of US. 770billion dollar is on top of 152billion in tax cuts according to Kent Klein research on voice of America. They have spent large amounts to rescue mortgage lenders Fannie mae and Freddie Mac, the huge insurance company AIG. By removing uncertainty on impending mortgage related losses, a way is paved for the banks to keep lending. More companies have also come out to ask for assistance so they are included in this recovery plan. US citizens are then left to wonder if there Tax will go to these people without themselves seeing how they benefit from this plan directly. The president –elect Barack Obama, economy administration is also proposing stimulating packages estimated to be $300 Billion. It looks like many packages will be coming up and we are not yet sure how much is needed to rescue the US economy and if this plan may work? According to Ms. Reinhart, who has studies the history of financial crises around the world, suggest that the government need to act quickly. She states that ‘the longer crises last, the bigger the bailout’.
It is hard to raise this much-needed money. According to Gus Faucher, the money will come back coming from borrowing money from other countries through selling of bonds overseas. A question if the whole plan will work is also a concern to many. Either way we do not have other choices and actions needs to be taken. What we can hope for is our economy will be brought back in shape if not better than before .As of now the Bush administration and the president –elect Obama’s administration is working their best to confirm that.