The congressional defeat of the proposed bailout plan by the Treasury led to one of the worst stock market days in history.
The result was an elimination of trillions of dollars in shareholder wealth.
The main reasoning for the rejection of the plan was that ordinary taxpayers should not have to subsidize the fat cats over on Wall Street.
What are entrepreneurs saying about the bailout plan? Mark Cuban (one of the Top 25 Visionaries, and creator of the The Top 7 Rules For Startups) is an American entrepreneur worth about $2.8 billion.
He is also the owner of the Dallas Mavericks and writes the popular blog, Blog Maverick.
According to Cuban:
“The bailout will boost access to credit quickly to consumers with good credit. For those with less than good credit, it won’t flow for a while. This may actually force people to save and pay down their credit cards. That’s a good thing.
We not only need the bailout, but we need far better transparency and oversight than the current form of the bill offered. You’re going to have to bailout, you’re going to have to inject liquidity, you’re going to have to take the bad loans and all the bad instruments off people’s balance sheets.
If the big three banks – JPMorgan, Citibank and Bank of America – get it wrong because they are not under any more oversight than what got us into this mess in the first place then we may not know we have a disaster with them until it’s too late. They may be too big to bail out.”
What do you think the government should do? Is there a better way to increase accountability and rescue the troubled American financial industry?
