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The current financial strain that started in the year 2008 has elicited a lot of reactions as to how President Obama’s government has handled the issue. The bailing of the companies and institutions by the government has elicited sharp reactions from critics and words of praise for those who think this will help in bringing the economic slump down to a halt. It is on this basis that this paper is written.

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Situation Analysis

The economy of the US is currently on a recovery path though analysts put it to be on a very slow pace. While financial advisors see this as quite pleasing; critics claim that the bail out opion taken by the government at the height of the crisis was to blame for this slow speed (Drucker 69). While critics lat the whole blame on the slow speed to economic recovery to the bail out program, Financial advisors of the government and those in favor of the bail out plan have their shoulder raised high in asserting that the economy going down is quite easy but recovery will always take a little bit of more time-Rome was not built in one day.

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Critics of the bail out plan base their criticism on the possibility of the economic crisis being a creation of some greedy individuals who foresaw the possibility of the bail out plan and wanted to benefit from it (Balaam 87). While this may or may not be having some water tight support, The Federal Government defends the bail out plan saying that the crisis of such a magnitude could not have been a creation of a few business personalities or conglomerates. This they attribute is due to its worldwide spread. However, the critics pounce the government on the foundation of America being the largest Economy and the most influential state in policy making. They therefore argue that “When America coughs, the world sneezes.”


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Given the nature of the economic crisis, the fact that the bail out plan has contained the situation is positive enough to give this plan (bail out) a thumbs up. However what we wait to see is when the thousands that lost their jobs in the US will be able to get back to their feet.

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