So, this few weeks have been pretty crazy. With all that is going on in the country with the Wall sTreet mess.
The Bush administration is trying to convince congress that the 700 billion dollar bail out is the way to go. Well, we’ll see how that goes….

My question….If the government lends heavy, and then they default then what happens? Do we get bought out for .25 on the dollar and become part of China?
President Bush is saying, “our entire economy is in danger,” called on Congress to approve his management of $ 700 billion bailout proposal.
Failure to act quickly to the bailout plan will lead to a “long and painful recession,” Bush Warned.

“We are in the midst of a serious financial crisis and the federal government is responding to the obvious action,” Bush said in TV address Wednesday night from the White House.

Bush emphasized that the collapse of several large lenders are deeply involved in the subprime mortgage market that thrived during the past decade.

He told over 700 billion dollar bailout proposal is needed to restore confidence in the market.

“I am a strong believer in free enterprise, so my natural instinct is to oppose government intervention,” he said. However, “these are not normal circumstances. The market is not functioning properly. There was a broad loss of confidence.

“No immediate action by Congress, America could slip into a huge shock.”

If Congress fails to approve a plan for rescuing the people can stand “long and painful recession,” said Bush.

“The plan is a big enough to solve a serious problem,” said Bush.

The plan calls on the government to buy the company up to $ 700 billion assets into trouble - primarily mortgage-backed securities - that the value of the housing market declined imploded. The goal is to strengthen the company and encouraged them to lend again.

“The government is the only institution of patient enough to buy property in their current low prices and hold these until their prices back to normal,” he said.

Federal Reserve chief Ben Bernanke Warned Wednesday that the crisis Wall Street’s worst country is faced since the end of World War II and called on Congress to act on the proposed bailout package.

Congress is considering whether to allow Treasury Secretary Henry Paulson for the use of federal funds for the purchase of up to 700 billion dollars in mortgage-related securities and other property caused disarray in Wall Street and undermined credit markets worldwide.

But Paulson and Bernanke faces deeply skeptical lawmakers, including members of Bush own party, when they pitched the plan before the conference committee Tuesday and Wednesday. Watch the video as lawmakers push back ”

The White House has largely taken a hard line during negotiations in Congress, but it is signaling a new spirit of cooperation that suggests the administration realizes the situation is so serious that they will have to compromise to get something that done.

“This is not a take-it-or-leave-it,” the government official said earlier Wednesday Senior. “We accept the changes.”

The senior administration official said the president is contemplating a strength-time speech in a few weeks, but finally decided to bring it tonight, because he believes that the situation has reached a crisis stage.

“This is the only one bullet fire,” said a senior official. “We reached a point in the process, which we only become action.”