The U.S. stocks bounced back early on Tuesday after the worst percentage drop for stocks since the 1987 crash. The Dow Jone industrial rose 223 points from yesterday when it dropped a record 777points. Soon after the stock market failure in the U.S. Asian and European markets began their downward slide as the world hoped that the bailout plan would be passed in Congress. Market Strategists say that the reason for the American market rebound was the hope that a revised bailout plan would be passed in the next view days, not because the market is repairing itself. The market turmoil across the world was caused when U.S. House of Representatives voted against the biggest government intervention to the economy since the Great Depression. Monday's stock market drop alone reach 1.2 trillion dollars in value which was the first time in history that the world market dropped over a trillion in one day. In the United States both major political parties the Republicans and the Democrats support the idea of renewing the bail out plan.
In my opinion I think this bail out plan is needed to save the world economy. Even though some people in high positions may not agree with it, they have to remember that it was because of government intervention that the United States got itself out of the Great Depression. What really is confusing is how this mess started in the first place. I think people who against the bail out plan are correct in a sense that it was Wall Street that got itself into this mess, it was not really an accident. No economy suddenly fails suddenly with no one at least predicting that such a thing would happen. A long time has passed since the Great Depression and I beleive that economists and bankers would be better equiped to stop this catastrophe.
