$700 Billion Government Bailout Plan Still in the Works

With financial markets in turmoil, the government has put together initial plans to bring some stability back to the market. This includes buying some of the toxic mortgage securities from banks so they aren't faced with such dire consequences and continue lending to consumers and individuals. But, nobody can seem to agree on every aspect of the plan. An initial agreement was reached on Thursday, only to fall apart after it made it to the White House.

Will taxpayers be on the hook for this bailout? Will there be caps place on executive compensation for the bailed out companies? What will the government oversight be so that this money will be spent wisely, and how will we make sure this won't happen again in the future? These are the questions we're waiting for. Details are sketchy, and until lawmakers can come together and compromise on a plan, we're left with speculation.

Until the plan is finalized, we won't know exactly what impact this will have on people, so there isn't much of a reason to make any drastic changes to your financial plan at this time. I would recommend at least making sure your emergency fund is built up as it should be, and if in a bank, that it's FDIC insured. Aside from that, we'll have to wait and see what the markets do in response to the finalized bailout plan.