Monday, June 1, 2009

My viewpoints upon the motion

The economy is in a big recession, the country is in danger, and the failing bank is big enough to influence the whole bank system. This is what happened in the United States currently, because of the financial crisis and the huge banks are bankrupt, the savings of millions of people are lost, large amount of unemployment are occurred which leads to demonstrations and social unrest, the confidence of finical system is losing and many even feel upset, many other related systems are influenced and cannot work as well as before. To solve this complex problem, the best way is using government.
First, as a government, it has the responsibility and capability to deal with this situation.according to the functions of government, the government must insure domestic tranquility and stability of the society protect the economic infrastructure, make sure every system are running well and provide sufficient employment.
Second, in this special time, we should look for special solutions. In normal times, we should follow the market mechanisms. However, as the market mechanisms are not always perfect, to be rigid is not a wise choice. Like some seemingly acceptable measures, market mechanisms need a very long time to work. Yet, the situation is so urgent that we cannot wait for that long time. Definitely, using government to rescue the economy is a quicker and more effective method. Hence, government should rescue the economy.
Using government to solve a series of economy, sometimes we must rescue the failing banks. As an organization that provides various financial services, bank, it has become an indispensable part of our lives. It is closely linked with the personal finance and many other occupations. When we meet an economic problem, we can not ignore bank, because it is related with other institutions. As we mentioned above, some failing banks play a very important role in the whole banking. Some famous brands in banking are extremely valuable. If we do not rescue the failing banks, the whole banking will be in danger and we will lose some hard-won brands.

At last, we want to say that in certain condition, the government should rescue failing banks, but it should rescue them wisely, for instance, we can nationalize the bank. The government should supervise the method strictly. In addition, the government should not rescue all the failing banks, because for some, it is too hard to recover.

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