$4.35 Gallon of Gas Offset by $700 Billion Financial Bailout

As of Saturday morning, President Bush requested $700 billion from the US government to allow the Treasury Department to buy and resell millions of mortgage-backed assets. Unprecedented in American history, the proposal, a mere three pages long, provides no oversight other than semiannual reports to Congress. The deliberations taking place in Washington over the weekend show an urgent wish to finalize legislation by the end of this week.

President Bush, referring to the amount of money requested, stated, "This is a big package, because it was a big problem." He assured citizens that over time "we're going to get a lot of the money back" and that working people would gain relief under the proposal. Congress passed a program to help refinance mortgages in July, but funding for the program depended mainly on fees paid by Fannie Mae and Freddie Mac, now under conservatorship of the US government.

Democrats on Capitol Hill are pushing additions to the current proposal that include limiting the pay packages for corporate executives whose companies are now under government control. In addition, many Democrats would like to see additional economic stimulus moves presented in the proposal. Presidential nominee Barack Obama stated earlier this week that he would press for a broader stimulus initiative, stating, "We have to make sure that whatever plan our government comes up with works not just for Wall Street, but for Main Street."

John McCain also issued a statement on Saturday urging lawmakers to consider his plan to create a trust within the Treasury Department for mortgage lenders and financial institutions. He also urged quick action, stating "this financial crisis requires leadership and action in order to restore a sound foundation to financial markets, get our economy on its feet, and eliminate this burden on hardworking middle-class Americans."

The current proposed spending would eclipse the amount of direct costs on the Iraq war, totaling to approximately $2,000 for every man, woman, and child in the United States. In comparison, a gallon of gas sounds easily digestible by my wallet.

Herszenhorn, David M. "$700 Billion Is Sought for Wall Street in Massive Bailout." New York Times 20 Sept. 2008.