2008 Woodie Awards
Economy Alarms NMU Students
Carson Lemahieu
Issue date: 10/2/08 Section: News
On Monday, Sept. 29, the U.S. House of Representatives voted down a $700 billion "bailout" bill that was intended to provide relief to failing financial institutions and inject life into a struggling stock market.
Following the rejection of the bill, the Dow Jones Industrial Index fell 777 points -- the largest one-day loss in history.
On Wednesday evening the U.S. Senate passed an amended version of the bill by a vote of 74 to 25. The House will vote on the amended bill later this week.
Major investors are not the only ones affected by the economic turmoil. NMU students also hold strong opinions on the economic subjects.
NMU senior, Frank Mumford, double majoring in economics and business, said that he is against using $700 billion to bail out Wall Street. Instead, he is in favor of giving a smaller amount of money to help the companies.
"We need to give them a small amount of money and make the rest the responsibility of the companies. They need to clean up what they [screwed] up," he said. "We need to give them just enough to get rolling. If we give them $700 billion, it is ridiculous."
He continued to say that he thought the crisis was an avoidable one.
"I am disgusted that something like this has happened in the free market, and I blame the fact that there was no regulatory policy on these processes," Mumford said. "It was brought up to the [U.S. House of Representatives] in 2004, and both then-Federal Chair Alan Greenspan and the secretary of the treasury said we needed more regulation of this, but nothing happened."
Mumford is also the president of the Economic Students Association.
He went on to say that with the failure of many prominent financial institutions it would be increasingly difficult to find a job after graduation.
"With future unemployment being projected at 7 percent it's not looking good for entry level jobs," he said. "Definitely with banks failing and companies downsizing they aren't exactly going to be lining up to hire me once I get out of school."
Following the rejection of the bill, the Dow Jones Industrial Index fell 777 points -- the largest one-day loss in history.
On Wednesday evening the U.S. Senate passed an amended version of the bill by a vote of 74 to 25. The House will vote on the amended bill later this week.
Major investors are not the only ones affected by the economic turmoil. NMU students also hold strong opinions on the economic subjects.
NMU senior, Frank Mumford, double majoring in economics and business, said that he is against using $700 billion to bail out Wall Street. Instead, he is in favor of giving a smaller amount of money to help the companies.
"We need to give them a small amount of money and make the rest the responsibility of the companies. They need to clean up what they [screwed] up," he said. "We need to give them just enough to get rolling. If we give them $700 billion, it is ridiculous."
He continued to say that he thought the crisis was an avoidable one.
"I am disgusted that something like this has happened in the free market, and I blame the fact that there was no regulatory policy on these processes," Mumford said. "It was brought up to the [U.S. House of Representatives] in 2004, and both then-Federal Chair Alan Greenspan and the secretary of the treasury said we needed more regulation of this, but nothing happened."
Mumford is also the president of the Economic Students Association.
He went on to say that with the failure of many prominent financial institutions it would be increasingly difficult to find a job after graduation.
"With future unemployment being projected at 7 percent it's not looking good for entry level jobs," he said. "Definitely with banks failing and companies downsizing they aren't exactly going to be lining up to hire me once I get out of school."
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