Article, "Congress: Don't use bailout for bonuses"
http://money.cnn.com/2008/10/29/news/economy/meltdown_bonuses.ap/index.htm
Current Event
In this article, “Congress: Don't use bailout for bonuses,” from CNNmoney.com, The author talks about how the first payment of the $700 billion bailout plan was made and how they are afraid of where the money may go. People are afraid that this money will go into the pockets of executives and owners instead of toward helping the economy with a jump-start. “funds made available under the economic rescue package should not be used to pay for bank acquisitions, raises, and executive bonuses,” says John Boehner, House of Representatives Republican leader. Both parties are worried about the money and where it is headed. The bill does put limits on compensation and ways to use the money. Time will tell what exactly will happen and how it will actually help out the credit market and the economy as a whole. The bailout was planned to thaw the frozen solid credit market and to stimulate the loaning of banks to each other again. The article says that some news reports have stated that six major participants in the bailout, “plan to pay their executives billions of dollars.” That is a very interesting idea.
I think that it is very stupid of companies to pay off the executives because even if the people think they have money and are fine, they will be surprised very very soon. The executives will have money in the short term, but when the economy digs itself into a much larger hole than it is already in, no money will matter because there will be nothing to back up that currency and no one will care that they have that money because it isn't worth anything. If the money goes into the stimulation of the economy, those executives will, theoretically (no one really knows), make that money back because they will hopefully pull the country out of a further repression and out of a full fledged depression. This would be a relief for every single American that has anything to do with The United States of America, (which is every single one). As for congress being worried, I think that this is a good thing to be worried about and I am happy that they can at least agree on something at this time of year. (finally)
