The bailout plan needs to be passed to help and stimulate the economy. It will not only impact the American economy but also global markets. Instead of focusing on rescuing failed businesses, the plan should focus more on homeowners and helping them repay their debts. In this way, the bill would help homeowners and businesses who are in possession of these types of problem assets. Politicians should be less focused on their re-election and more focused on voting for what is best for their country and the global community. The government must approve the bailout plan to free the banks and restore some liquidity in the markets by taking on bad loans. The entire global financial system depends on mutual bank lending. Cash flow can be seen as the grease that keeps the financial system running. It can be compared to a car engine. Without oil and gas the engine will stop working and the car will go nowhere. At this time, banks are not willing to extend credit to other banks, which results in lending money becoming more expensive. If the bailout is not approved, more banks could fail and the stock market could collapse and wipe out retirement accounts. Furthermore, businesses may have great difficulty obtaining credit. They would be forced to close, which would wipe out millions of jobs. Under the bailout, the Treasury Department gets $250 billion to immediately begin buying troubled assets, such as mortgages from banks and financial institutions. If necessary, the president could spend another $100 billion buying distressed assets. By purchasing these assets, the government will gain ownership stakes in the companies. Once...... middle of paper......634-0000779fd18c.html?nclick_check=1Hitt, Greg and Paletta, Damian (2008). Leaders argue over bailout. The Wall Street Journal[Online]. Available at: http://online.wsj.com/article/SB122235295272975207.html?mod=article-outset-boxMayerowitz, Scott (2008). Does the bailout ignore homeowners and executives? ABC NEWS[Online]. Available at: http://abcnews.go.com/Business/SmartHome/story?id=5909063&page=1Luhby, Tami (2008). Rescue: A little help for homeowners. CNN Money[online]. Available at: http://money.cnn.com/2008/09/28/news/economy/bailout_foreclosure/index.htmWorld reacts to rejection of US bailout. BBC[Online]. Available at: http://news.bbc.co.uk/1/hi/world/7643903.stmHulse, Carl and Herszenhorn, David M. (2008). US House rejects bailout plan. International Herald Tribune[Online]. Available at: http://www.iht.com/bin/printfriendly.php?id016566700