Congress changes mind on bailout, Wall St firms
The $US700 billion bailout of the American financial system is official and has been signed off by President George W Bush, who launched the rescue plan a fortnight ago.
The House of Representatives voted 263-171 in favour of the bill after it was earlier passed by a large majority in the Senate but rejected in a shock Congress vote on Monday.
The revised bill added a range of sweeteners and tax breaks – some of them relevant to the financial crisis but others clearly not.
Among the latter were subsidies to Virgin Island rum producers, insurance for mental illness and tax concessions for manufacturers of children’s toys – all aimed at changing the minds of sufficient Congress members, all of whom face re-election in few weeks.
In all, this added another $US152 billion to the full cost of the package.
The bailout is the biggest government intervention in the financial markets since the Great Depression and is aimed at helping the nation's economy withstand the financial turmoil and not fall into recession.
In a brief speech welcoming the decision, President Bush said he acknowledged widespread concern about using taxpayer money to bail out wealthy bankers, but said the ultimate cost would be "far less" than the initial government outlay.
The money will be used to buy “toxic” loans off stressed financial institutions and either write them off or hold them until they can be sold or paid back.
Stocks on Wall Street, which tumbled sharply in response to the original rejection of the bill, were steady in the week’s final trading session.
The credit crisis has taken its toll of the banking system as well as ordinary Americans’ businesses and lives through home foreclosures and job losses.
In recent developments, the largest savings bank, Washington Mutual, failed and its deposits were acquired by JP Morgan Chase, while Wachovia agreed to be acquired by Wells Fargo.
In California, governor Arnold Schwarzenegger is seeking $US7 billion in emergency funding for day-to-day operations as the state is frozen out of the bond market.
A number of lawmakers said phone calls and emails from constituents over the past few days had shown a dramatic shift toward broader support of the rescue plan after they earlier showed their anger at the use of taxpayer money being used to repay the excesses of financiers.
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Comments
What Happened?
What happened to that $700 billion, anyway. This was such an emergency need that surely they must have used a large chunk of it by now in addition to the $400 billion that the Fed send out to foreign banks while Congress was approving the $700 billion. To hear Paulson, Bernanke, and Bush tell it, the banks were all sitting around with their mouths open gasping for air.
In the meantime, we noticed that Federal Reserve Stock holders Chase and Citigroup are going to make out like bandits buying up assets for pennies on the dollar.
Now the headline reads, "Housing must mend to see economic recovery". What was the purpose of the $700 billion?
We weren't born yesterday. Washington was and they have been scammed again. As soon as we replace the Congress members and Senators that voted for this bill next month, we need to raise their salaries to say, $1 million so we can attract some talent to the next election.
http://ewebsmith.com/finance/CPResponse.html
PROSECUTE
why wait ? we need the ability to fire them any time we want to....as in AMEND THE CONSTITUTION- GRANT atm CARD TYPE VOTING POWER 51% Favor VOTE SAYS "see you" then we prosecute if warranted
Spend another 700 billion investigating DEMOCRATS esp OBAMA for the 1 TRILLION we were scammed out of by ACORN
BLAME THAT ON BUSH PELOSI!!!
Bail out
I like your style!
This is top down bad
This is top down bad management we used to run like wallmart
but between the collective greed and ignorance of Bush, Paulson, The Senate and the house they are fleecing us.
Those calls supporting this garbage are mostly from banks ordering their employees to call in or get fired (really).
Now I am a Democrat but I say we vote them ALL out of office..
every last #$#$%#% one of them.
bailout
We should vote out anyone that supported this socialistic bill. It's the American Way of life that,s on the line.
bailout
We should vote anyone that supported this bill out of office that backs this socialism. We need to to protect our freedom.
bailout
why do the rich keep collecting money (aka taxes) from the poor only to give it away to the richest? aka haliburton, these banks... all it does is maintain ignorant management & screw the poor (and the poor's great great grandchildren) & keep the rich rich, even though they made super bad business decisions.
Bailout
I agree with the comments posted here! Now I ask myself. What is America. or should I say what WAS America. At one time it listened to the people. Now it listens to Banks. (When you have money you have power) WRONG. It is when you have common sense, You have POWER! You tell me throwing good money after bad money is the way froward. No Bank ever offers this advice to business clients that I know of! How the tables have changed!
Bravo
The answer to your question is simple. The (aka Banks and the rich) Make the rules. They do this in the belief that if it is good for them, then it must be good for everyone!
.... Great Logic in that a' ...
Bailout
Let us show our Congressmen how we feel about the bailout by voting out of office those who said Yes to it. Let us disagree with their insanity by increasing our individual productivity, bypaying off our debts and not borrowing. Two English comedians say the truth in a manner that is acceptable to all and with Spanish captions. Pass on this url:
http://www.dailymotion.com/erioluk/video/x684wa_the-last-laugh-george-pa...
Comedians url
http://www.dailymotion.com/erioluk/video/x684wa_the-last-laugh-george-pa...
I am resending it because it got cut off.
Who's to blame?
So what's new? The rich get richer and the poor (and now middle class) get poorer. It's been a staple of life since the begining of recorded history. Look at the times of Louis XIV. Peter the Great and Nero to name just a few.
They'll get your private retirment money (not mine - I dumped 401 K years ago.) Put your assets into things that have value now and when things turn to do-do.
They'll take the Social Security. MCain want to privatize it. What has that done for anything?
Then we'll all have to work till we die. They've already taken our smarts. (US 21st in world standardized science - 23rd in math). But then again, isn't it a fact that stupid people are easier to control and fleece.
The maldistribution of wealth is an ugly self perpetuating fact of life. Who's to blame? Technically you an I. That is if the elections are fair... and with the money and power at stake; anyone who believes these corporate and political swine allow free fair elections deserves what they get.
We're all just along for the ride.
Bailout
You Americans are crazy. 700 billion dollars must be something like 2300$ per American. Why doesn't your president just write every single American a cheque for 2300$ and let the banks go bankrupt instead.
What is Rome?
It is but a whisper...
Bailout
I wish that the government would not bail-out these companies. Let the econmony fall and work it's way up.
this isn't quite socialism.
this isn't quite socialism. socialism is the advancement of members of societies, not corporations. socialism would involve the sharing, nationally of the profits. Instead, all that's being shared is the risk of big businesses without, the whole reason for financial risk, any of the financial profit.
Well...
I'm sorry but do any of you have a better solution to this issue? Instead of sitting around complaining and blogging about what an awful idea this is why don't you maybe present some sort of a solution to the problem? B***ting I guess, is the America way, along with living above our means, and complaining about how bad it sucks to live in America and blah blah blah blah. If it sucks so bad and you don't want to do anything about it, LEAVE. The last thing this country needs is more negativity.
Bail out
how does taxing the life out of the poor benefit the economy(thats all the bail out will do)? in reality if they stop taking so much away from us most of it would go straight back into circulation anyways? that or invested in a bank where it works just as well
I am a minor and i don't
I am a minor and i don't understand y i get no say in this bailout, i understand that i don't get to vote but in the next presidential election i will, and this bail out will shape the rest of the financial side of my life. and who did these congress ppl ask the reg. plain joe's or the rich, cuz they definitley didn't ask me!!!!!!
BAIL OUT
THIS IS SO STUPID, WHY SHOULD THE GOV. GIVE THESE PEOPLE OUR TAX MONEY ? WHEN THEY CAN'T TAKE OF THEIR OWN MONEY. I HAVE A SOLUTION, IF YOU ARE LEGEL IN THE US AND YOU FILE A TAX FORM THE THE GOV. SHOULD GIVE EVEREYONE 1 MILLION $ AND GUESSS WHAT? MOST PEOPLE WOULD PAY OFF THEIR DEPT. TO THE BANK AND SPEND MORE $ AND IF YOU FIGURE 300 MILLION TAX PAYERS IN THE US. HUM ????? THATS 300 MILLION $ A WHOLE CHEAPER THAN 700 MILLION, THAT DON'T TAKE A ROCKET SCIENTEST TO FIGURE THAT OUT.
Math is obviously not your
Math is obviously not your thing :) 300 Million people in the US. 700 Billion Dollars is $2300 per person. Now I doubt that all 300 Million people are tax payers.... kids, etc. But assuming there were If you were to give 1 Million Dollars to each "Tax Payer" then the bill would be around US$300000000000000 or $300 Trillion Dollars..... Not even the almighty USA could stump up with that sort of cash. The GDP of the entire World is only ~$54 Trillion Dollars. No wonder why your country is going to the pack.. lack of education
im an australian and i dont
im an australian and i dont quite understand whats happening. all i know is that it is beginning to effect EVERYONE! people in iceland are withdrawing their savings and storing food for when it all goes super bad. and i now i hear its australias problem too. can someone explain it in lay terms for me?
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