Financial Crisis Woes

By Danielle Canada

 

               On Friday, President George W. Bush signed a $700 billion financial bailout into law. The law which the president calls a “rescue plan” gives the National Treasury the right to spend up to $700 billion to buy mortgages and other assets from financial institutions such as banks and credit unions. The law also gives the Treasury the right to modify mortgages to help decrease home foreclosure. According to the Associated Press, many members of congress changed their vote from earlier in the week, and voted in favor of the bill citing their fear of a deeper recession as the reason for their vote in favor. Nationwide the “bailout bill” is getting mixed reviews. While some people are unimpressed, others are hopeful for change. “This bailout is just that, a bailout, not a solution,” says senior marketing major Alisha Glover of Delaware. “Banks cans still do the same thing they’ve been doing six months from now when I graduate college, so in six months I expect to be struggling just like everyone else is doing in the country!” Like Glover, Jennifer Canada, a graduate student at Virginia Commonwealth University agrees. “Even though I don’t have assets and I don’t have a 401 K, the financial crisis could affect me and my loans next year when I try to go to dental school,” says Canada. “If the banks aren’t lending out any money then I won’t be able to go to school. It’s as simple as that.” Canada is correct but if the bailout works as promised that shouldn’t be an issue. With the bailout, the government will be able to buy and take over “troubled assets” which Bush is hoping will retract from the repression-like state it is currently in now.  Although President Bush promises the bill will bring about a positive change, questions about the bill still linger. Questions much like the ones asked by senior broadcast major, Randi McClain. “What happens if this doesn’t work? What if things get worse and wind up in a depression?” says McClain. “I’m not feeling the effects of this crisis yet but I will be in May when I graduate. I really hope things are better by then!” Many other students at Hampton University feel the same way as McClain. Senior Caresse Weatherford is most worried about her future in the business world after graduation. “Right now this crisis isn’t affecting me at all, I wake up every day and go to class like normal but I’m not sure what will happen in the future. Especially now that jobs are uncertain and there could even be a depression, I’m worried. How can I support myself on my own, with no job?” Students aren’t the only ones concerned; working adults have much to worry about as well. In one of the nation’s most famous and arguably greatest cities, New York, 46 year old Sharon Dawson hopes things improve for her family’s sake. “This crisis has made things so much harder for me,” says Dawson. “I need to refinance my house but I can’t because the banks aren’t willing to give me credit and my credit scores have been lowered. I hope the banks can eventually extend more credit so it will be easier to get a loan,” Dawson continues, “My daughter needs to college next year and without a loan that just won’t be possible,” With only three weeks left  till the presidential election, this bill has undoubtedly put a strain on both parties’ campaigns. Senator John McCain suspended campaigning all together to pay more attention to the crisis and Senator Barack Obama is equally concerned. Until a solution to the crisis is met Americans will continue to be on edge. “I just want a change,” says Senior Brittany White, “Something’s got to give, because we can’t go on like this. I need to know that I’ll be able to get loans in the future for my house, my career, my life. I need to feel secure and feel comfortable and right now I’m not.”Americans are hopeful that the biggest bailout of the U.S. banking system will make things better, partly because they are optimistic but mostly because they can’t handle anything much worse.

-Danielle Canada

700 Billion Dollar Answer?

By Septima Glenn

They were the best of times, they were the worst of times, but today many Americans are feeling the worst financial times since the great depression. With a 700 billion dollars bailout plan that has just been passed, many Americans hope this is the key to reverse the economic slump.

                “Something has to be done about the economy,” Blue Ridge High School assistant principal, David Smith said. “If not, there’s no telling how bad this thing could get.”

With gas prices soaring and the number of people with jobs is dropping, many wonder how this all began. Some blame it on the war and the current people in office, however others say it just happens.

                “The economy goes through cycles. Some cycles are worse than others, but it’s a cycle nonetheless,” said Idella Glenn who is the Director of Multicultural Affairs at Furman University.

For students who have not entered the work force or even started college, there is less concern, but there are still many questions to be answered. What does this mean for them? When it’s time for them to get a job, will the economy still be lagging behind? High school junior Natalie Glenn took more of a “who cares” stance on the topic.

“I mean I know gas is high and people don’t have jobs but that doesn’t mean anything to me,” Natalie said. “By the time I’ve got to get a job Obama is going to be president and everyone will have a job.”

Others are optimistic about the state of the economy right now. Pointing out there are some pluses to  times like these. According to Michael Forny, for people who are entering the housing market for the first time the economy is perfect.

“If there is a young couple, who is employed, has saved their money and is ready to buy a house, this is the time,” Forny said. “Houses are selling much lower than they did five years ago and builders are offering substantial upgrades to bring buyers in.”

Still others are relying on prayer and faith.

“I know the Lord will work everything out for the best,” 80-year-old Virginia Glenn said. “He always does.”

The Economic Crisis and those it affects

           Corrine Gray-Staples

Word Count: 375

Edited by: Tiffani Haynes

 

 

 

 With the 2008 presidential election underway, the United States continues to deal with financial blunders that have the nation in an economic crisis. Recently, a $700 billion bailout bill was passed to rescue the nation’s lending institutions and big businesses that have been affected by the defeat of Wall Street.

            However, many Americans do not agree with the bailout.

            “It’s wrong,” said Brenda Parkman, a retired veteran and working parent of a child in college. “The money should be spent on the people; those with homes in foreclosure, those who don’t have homes at all.”

            Hampton University student, Akina Conway agrees.

“There are better ways the government could use the money,” she said.

            Dave Smith, a supervising counselor in San Diego, believes the economy sunk to an all time low.

“it never should have come to this,” Smith said.

            Others have mixed feelings.

            Ashley Thornton, a senior computer science major at Hampton agreed with the bailout.

 “It’s a necessary evil,” Thornton said. “If something wasn’t done, there would eventually be even more chaos.”

However she isn’t sure if this was the best approach.

            Yet, even with the economy in a recession, the most that affects a lot of folks is high prices. The solution for Hampton sports management major, Sean Alston and Morgan State student, LaDonna Butler is to stay employed and save money.

            The state of the economy has caused Conway, Parkman, Thornton and Smith to adjust their lifestyles accordingly by putting more thought into purchases and places they need to go.

            As a graduating student, Bryan O’Meally plans to further his education in graduate school rather than jump directly into his field.

”It’s a win-win situation for me,” O’Meally said. “I’ll be educated and hopefully, by the time I graduate the economy will be better and companies will be looking to hire people like me.”

            So, as the most historic presidential election draws nearer, which candidate are people looking at to handle the economic situation the best?

 “It isn’t about handling the crisis because it’s already been handled (with the bailout),” Alston said.  “It’s about progressing from the recovery of the crisis.”

And most believe Sen. Barack Obama will be the best candidate. America will have to wait and hope for the best.