The Bush Bailout Plan

Wednesday night US president Bush addressed the nation concerning the proposed bailout of US banks and tottering financial institutions. Reaction was mixed and even some Republicans criticized the administration’s proposals. Bush urged immediate passage of the bailout plan stating “We’re in the midst of a serious financial crisis, and the federal government is responding with decisive actions.” Bush also stated that failure to pass the bailout plan could lead to a “long and painful recession.”

Because of the perception that the US will act quickly to address the crisis the dollar is holding its own and is providing investors many Forex opportunities.

The Financial Crisis and Forex Opportunity

The current US financial crisis has affected stock, commodities, and Forex markets worldwide. Confidence in the US dollar is waning with many worried that the bailout policies proposed could lead to a devaluation of the US dollar. The financial crisis could not be more ill timed with the US suffering massive debt from the War in Iraq, rising oil prices, and massive infrastructure damage from recent hurricanes.

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