Is there a bail out?

I have read a fair number of blogs complaining about the governments “bail out” of people who over borrowed and companies who were responsible for much of the credit crunch. I don’t think the Housing Recovery Act is a mistake because it would not be prudent to push the economy into a long recession or even depreciation which I believe is a real possibility.

Only time will tell if the Housing Recovery Act will be successful but in my opinion when the financial system is faced with collapse there was no choice but to act.

In other news from Washington, earlier this week, the Federal Reserve did not make any changes in discount rate, leaving it at 2 percent. In their press release the Fed stated, "Although downside risks to growth remain, the upside risks to inflation are also of significant concern,"

The talking heads all seem to think we will see any interest rate changes from the Fed for the balance of the year as they watch and assess the risk to the economy.