Advice to the Federal Government

Wall St. in Worst Loss Since ’01 Despite Reassurances by Bush

By STEPHEN LABATON
Published: September 15, 2008

On Monday morning the stock market crashed. The Dow Jones industrial average had dropped 504.48 points. The Lehem Brothers were about to go bankrupt and Merrill Lynch basically failed and was bought out by Bank of America. It was the biggest decline since Sept. 17, 2001 after the 9/11 terrorist attacks. “I know Americans are concerned about the adjustments that are taking place in our financial markets,”- George Bush

Our class connection would be that we studied federalist and anti federalist and what ended up happening to fix the situation was a federalist act. The federalist believed in government should take control, basically a strong government. What ended up happening to help save the companies from failing was the government stepped in a lended them money to help get back on track again or it would effect the economy.

In our class discussion i thought that the government should only help certain companies like bank and other important companies that really fuel the economy. My opinion was that the government should give them loans and then they get it back together and things are back to normal, they can pay it back. With lending them the loan they should only allow them to make safer decisions so something like this wouldn't happen again.