Under the Treasury program the government has insured the holdings of any publicly offered eligible money market mutual fund. The U.S.Treasury Department announced Friday that it has set up a program to guarantee the U.S. money market mutual fund industry. In explaining the need for the program, the Treasury said in a statement Money market funds play an important role as a savings and investment vehicle for many Americans they are also a fundamental source of financing for our capital markets and financial institutions.
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marita
"yesterday, treasury secretary henry paulson proposed a plan whereby the federal government (also known as YOU THE TAXPAYER) would set up an entity to absorb the bad debt generated by the financial services companies in this country. think of it this way, if you had a joint investment account with your best friend and they took all of the profits and you were left with all of the losses, how would you feel? so now the government is saying that when these companies make money, the executives get big fat salaries and bonuses; when they go bankrupt, the u.s. taxpayer covers the debt. if these companies know that no matter how many bad loans and investments that they make that the government will bail them out, what is to stop them from continuing to do so? RIGHT NOW, THIS BAILOUT WOULD AMOUNT TO AROUND A HALF TRILLION DOLLARS. THAT IS $5000 FOR EVERY WORKING ADULT IN THIS COUNTRY. i know that i have better ways to spend $5000 of my money. please take a moment to send an email, letter or call your congressman/woman or senator and tell them that this is unacceptable. if they are running for reelection, tell them that if they vote for a bailout that you will vote for their opponent no matter the party affiliation. there are links at the bottom of this post to the house of representatives and senate websites. feel free to forward this information to your family and friends because they will have to pay as well if this plan goes through.
