"US lawmakers on Monday debated a 700-billion-dollar bailout plan for struggling Wall Street banks as US President George W. Bush appealed to Congress to quickly approve the deal to free up frozen credit markets."
By a 228-205 vote, the bill was not passed. Since then, stocks have plummeted.
"The plan would mark the largest government economic intervention since the Great Depression of the 1930s, and is designed to shore up a troubled economy suffering from a burst US housing bubble that has ravaged the global banking system. The proposal grants the Treasury secretary authority to buy up toxic mortgage-related assets in troubled banks in hopes of easing the flow of credit and reviving the moribund housing market. The plan would have also limited the salaries of top bankers and would put an end to the practice of giving out huge payments when they leave the firm."
"The plan would mark the largest government economic intervention since the Great Depression of the 1930s, and is designed to shore up a troubled economy suffering from a burst US housing bubble that has ravaged the global banking system. The proposal grants the Treasury secretary authority to buy up toxic mortgage-related assets in troubled banks in hopes of easing the flow of credit and reviving the moribund housing market. The plan would have also limited the salaries of top bankers and would put an end to the practice of giving out huge payments when they leave the firm."
"Both Democrats and Republicans immediately began to place the blame on each other for the bill’s failure. House Republican leaders blamed Democratic Speaker of the House Nancy Pelosi because of her 'partisan speech' shortly before the vote. She cited 'the Bush administration’s failed economic policies — policies built on budgetary recklessness, on an anything-goes mentality with no regulation, no supervision and no discipline in the system'."
Taken From: www.afp.com & www.cnn.com
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I have mixed feelings on the plan, but now at least taxpayers will not have to "bailout" Wall Street for the failures of their financial institutions. While the Bush administration continues to seek other solutions, it will ultimately be up to our New President, along with Congress, to save us financially and protect the economy.
* you would be amazed at the myriad of documents that are available for your use online.
What's the reality?..."your money no good here"
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