Tuesday, September 30, 2008

Comment: Stock plunge pressures lawmakers on bailout

The largest point drop in American stock market history will certainly turn up on heat on Congress to pass a bailout plan for Wall Street.

Since this record effort has, in my view, been about propping up the stock market, we can expect that Wall St. fat cats and political contributors are putting maximum pressure on lawmakers. However, the folk from Main St. are pushing back hard themselves.

Record numbers of calls, faxes and emails are inundating congressional offices rebelling against $700 billion plan. Newspapers are also receiving unprecedented volumes of mail, mostly derailing the bailout proposal.

House Republicans voted strongly yesterday to dump the plan, but 95 Democrats also rejected the bailout. Conservatives complained that the proposal interfered with the free market, while the Democratic opposition tended to call for more assistance on Main St. Both sides agreed that judicial oversight was needed.

What the current proposal offers is a fix for 5 million homes currently at high-risk of default. However, there are tens of millions of mortgages still expected to occur in the coming years. Is this bailout simply a 'first installment' of a much larger plan to save Wall St.?

 House leaders will reconvene Thursday after dealing a $700 billion financial market bailout a stunning defeat. The fate of the rescue package remained in doubt as Democrats and Republicans said they wanted to resurrect it. (Sept. 29)Play Economic bailout plan: Who profits? AP via Yahoo! News - Sep 29 3:36 PM image unavailableReuters
Report
Sep 30, 2008
 Leaders in the U.S. House of Representatives say they are reconvening Thursday instead of adjourning for the year as planned, after dealing a $700 billion financial market bailout a stunning defeat. AP's Jerry Bodlander reprots. (Sept. 29)Play House to reconvene Thurs. after bailout defeat AP via Yahoo! News - Sep 29 4:02 PM  Local lawmakers votes on the rejected economic bailout plan were mixed; KDKA's David Highfield caught up with several Congressmen as they made their way back to the area.Play Local Lawmakers Votes On Bailout Mixed KDKA Pittsburgh via Yahoo! News - Sep 29 8:33 PM  The House of Representatives rejected a $700 billion bailout plan by a vote of 228 to 225.Play House rejects bailout plan Reuters via Yahoo! News - Sep 29 4:09 PM

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