Congress Struggles to Revise Bailout Bill
President Bush warns that failure to pass the financial bailout bill will bring about severe consequences for the nation’s economy.
By Pamela Mortimer
Congress still hasn’t arrived at an agreement on the $700 billion financial bailout bill that may save Wall Street and a struggling financial market. The delay is making many people panic, an action that can only make matters worse. In a statement released Tuesday, President Bush said that failure to pass the rescue bill will result in severe consequences regarding the U.S. economy.
John McCain and Barack Obama agree and both of the presidential candidates addressed Congress, urging them to pass a bill as soon as possible. Part of the rescue plan, supported by both men, would entail raising the federal deposit insurance to $250,000.
Bush made a brief statement at the White House on Tuesday, saying, "If our nation continues on this course, the economic damage will be painful and lasting."
Bush also said his administration would work with lawmakers to get the relief package "back on track." The House voted down the bill on Monday with a vote of 228-205. The result of the veto was the biggest one day sales frenzy on Wall Street since the 2001. By the end of the day, the Dow Jones industrial plunged by 778 points.
Bush concurred that the $700 billion proposed as a maximum amount in the plan is a staggering number but still remains dwarfed by the $1 trillion lost during the nosedive seen on Monday's stock market.
"Because the government would be purchasing troubled assets and selling them once the market recovers," he said, "it is likely that many of the assets would go up in value over time. Ultimately, we expect that much - if not all - of the tax dollars we invest will be paid back."
The topics of the rescue plan and the overall state of the economy were top priority for both presidential candidates as they hit the campaign trail. The one subject on which both men agree is the need for increasing the level of federal insurance on savings accounts, bank deposits and certificates of deposit from $100,000 to $250,000.
"The first thing I would do is say, 'Let's not call it a bailout. Let's call it a rescue," McCain told CNN. "Americans are frightened right now" and the job of solving the problem rests of the shoulders of political leaders.
Congress still hasn’t arrived at an agreement on the $700 billion financial bailout bill that may save Wall Street and a struggling financial market. The delay is making many people panic, an action that can only make matters worse. In a statement released Tuesday, President Bush said that failure to pass the rescue bill will result in severe consequences regarding the U.S. economy.
John McCain and Barack Obama agree and both of the presidential candidates addressed Congress, urging them to pass a bill as soon as possible. Part of the rescue plan, supported by both men, would entail raising the federal deposit insurance to $250,000.
Bush made a brief statement at the White House on Tuesday, saying, "If our nation continues on this course, the economic damage will be painful and lasting."
Bush also said his administration would work with lawmakers to get the relief package "back on track." The House voted down the bill on Monday with a vote of 228-205. The result of the veto was the biggest one day sales frenzy on Wall Street since the 2001. By the end of the day, the Dow Jones industrial plunged by 778 points.
Bush concurred that the $700 billion proposed as a maximum amount in the plan is a staggering number but still remains dwarfed by the $1 trillion lost during the nosedive seen on Monday's stock market.
"Because the government would be purchasing troubled assets and selling them once the market recovers," he said, "it is likely that many of the assets would go up in value over time. Ultimately, we expect that much - if not all - of the tax dollars we invest will be paid back."
The topics of the rescue plan and the overall state of the economy were top priority for both presidential candidates as they hit the campaign trail. The one subject on which both men agree is the need for increasing the level of federal insurance on savings accounts, bank deposits and certificates of deposit from $100,000 to $250,000.
"The first thing I would do is say, 'Let's not call it a bailout. Let's call it a rescue," McCain told CNN. "Americans are frightened right now" and the job of solving the problem rests of the shoulders of political leaders.
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