It was close, but no cigar. Now it's back to the drawing board to see if a little pork here, and a little pork there will do the trick, that's our congress at work, aren't you proud of them.
I'm one who believes that congress interfered in the free market by encouraging loans to people that were not qualified. Some greedy bank people took advantage of the situation and lent money to anyone that they possibly could, knowing that the loans would be bought by government backed entities such as Fannie Mae and Freddie Mac. The free market will not be able to get us out of this mess, because it has been distorted by government interference.
Therefore, sense government interference brought us to this point of crisis; they are the only ones who can get us out of it.
If the free market had been allowed to work the way that it was meant to, we would not be in this mess. I wish the government would just get out of our way, and let us be free, the way it was meant to be.
US Congress debates massive Wall Street bailout
WASHINGTON (AFP) — 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.
"I fully understand that this will be a difficult vote," Bush said at the White House before the House of Representatives began debate on the proposal amid stiff opposition from some members of his Republican party.
But he said the rescue package "will help keep the crisis in our financial system from spreading throughout our economy."
The US president spoke after a compromise proposal was hammered out in high-stakes negotiations between rival party leaders in Congress and White House officials over the weekend before global markets reopened on Monday.
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.
As the pivotal debate began in Congress, the shakeup of the US banking sector continued with Citigroup on Monday agreeing to takeover Wachovia Bank. US regulators backed the deal that grants the government a stake in one of the nation's biggest banks.
The takeover came as Wachovia faced a near collapse of its share price and weakening confidence because of its exposure to troubled mortgage assets.
Congressional leaders, mindful of the approaching November 4 general elections, acknowledged the vote could be close while some conservative Republicans and liberal Democrats vowed to oppose the measure.
"We now have a deal that promises to bring near-term stability to our financial turmoil, but at what price?" Republican Congressman Michael Pence, a critic of the bailout, asked in a letter to colleagues.
Congress Debates $700 Billion Bailout Bill | |
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| News & Politics | Upload TimePublished on 29 Sep 2008 |
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