Saturday 27th of April 2024
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pumping privilege .....

pumping privilege .....

The government’s planned financial bailout is a significant if costly step intended to avert economic calamity, but it may not be the last one, according to economists and finance experts. 

The rescue plan would use taxpayer money — $350 billion initially, and up to $700 billion with Congressional approval — to buy mostly soured mortgage-backed securities from Wall Street firms and banks.  

These arcane investment instruments, linked to home mortgages, have combined with falling housing prices to ignite the credit crisis, which in turn has dire potential for an economic contagion that threatens even sound businesses and secure jobs in industry after industry. 

By taking these securities off the banks’ hands, the bailout plan seeks to restore confidence in the financial system and ensure that banks can still carry on their fundamental role of handling payments and offering credit to the masses. 

Opening Step On A Long Road

urged to...

from the BBC

President Bush has urged the House of Representatives to pass the bill and send a strong signal to the markets.

He said the deal was a "bold" one which he was confident would restore strength and confidence to the US economy.

However, he cautioned that the bail-out would not answer all the economic woes and said that difficulties would last "for some time".

Speaking at the White House President Bush said: "I'm confident that this rescue plan, along with other measures taken by the Treasury Department and the Federal Reserve, will begin to restore strength and stability to America's financial system and overall economy."

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Gus: see toon above... translation: "trust me, I am the President"...

rejected like a greasy salmon

from the BBC

The lower house of the US Congress has voted down a $700bn (£380bn) plan aimed at bailing out Wall Street.

The rescue plan, a result of tense talks between the government and lawmakers, was rejected by 228 to 205 votes in the House of Representatives.

About two-thirds of Republican lawmakers refused to back the rescue package, as well as 95 Democrats.

Wall Street shares plunged at the news; the benchmark index saw its biggest daily points fall ever, down 770.

A White House spokesman said that President George W Bush was "very disappointed" by the vote's result.

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see toon at top.