Will the Fed's bailout of Wall St. save the US from depression?

This weekend the Bush administration proposed a 700 Billion dollar bail out of the US financial system. The president requested wide spread authority for the treasury department to buy mortgage assets from various financial institutions through out the US. This solution to the crisis was put together by Ben S. Bernanke, the chairman of the Federal Reserve and Henry M. Paulson Jr. the Treasury secretary. This dramatic plan is aimed at preventing another Great Depression.

In March the Fed bailed out Bear Stearns and more recently Merrill Lynch, but let Lehman Brothers go under. The government then went on to salvage the American International Group (AIG) the giant insurer many considered to be the safest investment there was.

The questions Americans across the country are asking are, "will this bail out work" "are there more bailouts to come" and "are our financial futures at risk". The tentative answers are yes no and no. At least that is what the government wants us to think. There is no real guarantee bailing out financial giants will save the economy because the 700,000,000,000 dollars is coming out of taxpayers pockets. The real challenge will come to the next president of the United States who will have enormous pressure to right the wrongs of former administration. Whether it be John McCain of Barack Obama, the new president will have to change the way the mortgage system in America works and create surer safer more fool proof methods of investment.