WORLD> America
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WORLD> America
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US Senate to vote on financial rescue plan
(Agencies)
Updated: 2008-10-01 09:55 The idea drawing the biggest support was to raise the federal deposit insurance limit, now $100,000 per account, to $250,000. Several officials, including presidential nominees John McCain and Barack Obama, endorsed the change. So did the agency that runs the program.
Other ideas include extending unemployment insurance benefits, typically a Democratic goal, but one that appeals to some Rust Belt Republicans. Another Democratic-backed idea would double the property tax deduction taken by people who do not itemize their taxes. And another calls for more spending on transportation infrastructure projects, which would create more jobs. Monday's House vote was a stinging setback to leaders of both parties and to Bush. The administration's proposal, still the heart of the legislation under consideration, would allow the government to buy bad mortgages and other deficient assets held by troubled financial institutions. If successful, advocates of the plan believe, that would help lift a major weight off the already sputtering national economy. The proposal ignited furious responses from thousands of Americans, who flooded congressional telephones. The House voted 228-205 against the plan. Some lawmakers reported a shift in constituent calls pouring into their offices Tuesday after the record stock market decline. Many callers, they said, want Congress to do something without "bailing out Wall Street." Bush renewed his efforts, speaking with McCain and Obama and making another statement from the White House. "Congress must act," he declared. Though stock prices rose, more attention was on credit markets. A special rate that banks charge each other shot higher, further evidence of a tightening of credit availability. Bush was talking about everyday Americans on Tuesday, not banks or other financial institutions. And no supporters were using the word "bailout." The president noted that the maximum $700 billion in the proposed bill was dwarfed by the $1 trillion in lost wealth that resulted from Monday's stock market plunge. "The dramatic drop in the stock market that we saw yesterday will have a direct impact on retirement accounts, pension funds and personal savings of millions of our citizens," Bush said. "And if our nation continues on this course, the economic damage will be painful and lasting." |
