~Wall Street Blues~

On September 15, Lehman Brothers, one of the largest investment banks had announced that they have lost so much money, peoples' bad loans. The same day the U.S stock market had fell 504 points, also investors began to pull out their money from the bank. A few days after, two other major banks said that they were losing so much money too. Henry Paulson, U.S Treasury Secretary, proposed a $700 billion bailout of U.S banks and other companies that were struggling in financing a large organization.
The U.S economy got out of hand, because people wanted to buy a home that they couldn't afford, so banks had found a way to let them buy the home they wanted by creating a home loan called subprime mortgages. People who already had subprime mortgages had small monthly pay, but over the time their bill had been rising. When the home owners finely realized they couldn't afford to pay their mortgages they stopped paying. So the banks had to pay it themselves.
Henry Paulson had asked the Federal Government to give him $700 billion to help bailout the banks that were having trouble with loaning out the money. He said he would use the money to buy the bad loans back, and then then let the borrowers to get repaid. With all the bad loans gone, banks would be able to get back to business and give out more money freely and the United States can get back into business.