Bush signs bailout bill

The House gave final approval today to the $700 billion bailout for our financial markets, authorizing what may be the most expensive government bailout in American history.

The vote was 263 to 171. In a sign of urgency surrounding the package, Congressional staff rushed the newly printed legislation into a news conference where Democratic leaders gathered after the vote and Speaker Nancy Pelosi, signed it at 2 p.m.

Within an hour, the legislation made its way to the hands of President Bush.

Mr. Bush said they had achieved something "essential to helping America's economy weather the financial crisis."

[Source: nytimes.com]

Obama: It's an outrage

Presidential hopeful Barack Obama has said it is an "outrage" that Americans are being "called upon to clear up Wall Street's mess."

To hear the Illinois senator's remarks in full, click here.

[Source: news.bbc.co.uk]

McCain: Time to fix problem

Senator John McCain of Arizona reacts to the failed vote today in the House and condemns Sen. Obama for placing blame on people when we should be fixing the problem.

[Source: news.bbc.co.uk]

Asia stocks fall after U.S. failure

It's a slippery slope, ya'll!

Asia is reacting to the shock on Capitol Hill today, and in early trading on Tuesday, the Tokyo Stock Exchange's Nikkei-225 index fell almost 580 points, a loss of 4.94% of its value in a matter of minutes, the BBC News is reporting.

Australia and New Zealand are seeing similar losses, with the S&P/ASX-200 index dropping 5.3% in Sydney and 4.7% fall in Wellington.

I'm bracing myself, are you?

[Source: news.bbc.co.uk]

Pelosi on gridlocked bailout

Speaker of the House Nancy Pelosi has some choice words for President Bush and today's news that the proposed $700 billion bailout package failed to pass in the House of Representatives.

Update: It's being reported that Pelosi's address may have been the reason for the vetoed bill.

[Source: thepage.time.com]

House rejects bailout package, Stocks plunge!

In a week of economic and political turmoil, the House of Representatives just voted today to reject the $700 billion rescue of the financial industry. The vote came in defiance of President Bush and Congressional leaders of both parties, who said the bailout was needed to prevent a widespread financial collapse.

The vote was 228-205, with 133 of the president's OWN PARTY turning against him to join 95 Democrats in opposition of the bill. 

Supporters of the bill are saying they will try to bring the rescue package up again as soon as Wednesday.

In anticipation of a defeated vote today, stock markets plunged and only further plunged once the news came in. The Dow closed 777 points down, in the worst single-day drop in two decades and oil prices fell on fears of a global recession.

After the chaos, the president said the following:

"We put forth a plan that was big because we got a big problem. And we'll be working with members of Congress, leaders of Congress on the way forward. Our strategy is to continue to address this economic situation head on."

It definitely says something when members of your own party don't back you! 

[Source: nytimes.com]

A deal reaches tentative agreement

And may even have the votes to pass.

After successive negotiations, lawmakers and the Bush administration have reached a tentative agreement early today on a $700 billion financial rescue package.

The House is expected to vote on it tomorrow, with a Senate vote to follow.

Read Obama's response to the agreement here.

[Source: thepage.time.com]

McCain and Obama in first debate: No big moments

Presidential candidates John McCain and Barack Obama appeared in tonight's first presidential debate at the University of Mississippi in Oxford. After a turbulent week of economic and political drama, viewers are left not knowing who really hit it out of the park at the debate.

It would appear that Sen. McCain started out soft and ended strong. It would also suffice it to say that Sen. Obama started out strong and ended intellectually strong, but lacking in actual expertise to draw from. This is natural given that the debate spent about the first 30 minutes parsing the recent economic crises of the nation on Wall Street as well as Main Street and the last hour debating foreign policy and national security, both of which McCain capitalizes on voters' confidence.

The contenders discussed Iraq in depth, but didn't exactly stipulate their plans for the bailout package currently on the table at Capitol Hill. Moderator, Jim Lehrer of PBS, had to repeatedly ask the senators to specify whether or not they are yea or nay for the rescue plan. Sen. Obama though, did enumerate his plans for what needed to be done with the bailout. This is really the area Sen. McCain needed to come out on top of, with his latest proclamations and his failed history of wooing voters with his economic comprehension.

My question is: What do ya'll think of tonight's debate? Who do you think came out on top? For me, it was pretty lackluster.

Coming up next: Vice Presidential Debate: Sen. Joseph Biden vs. Gov. Sarah Palin - Thursday, October 2 - Don't forget to tune in!

[Source: Bethany]

Bush warns of 'long and painful recession' without financial rescue

President Bush addresses the nation on the financial crisis from the White House. He says the $700 billion bailout package is "aimed at preserving America's overall economy."

Though he says his "natural instinct" is to oppose intervening in the market, he claims "these are not normal circumstances."

"Any rescue plan should also be designed to ensure that taxpayers are protected," Mr. Bush said. "It should welcome the participation of financial institutions, large and small. It should make certain that failed executives do not receive a windfall from your tax dollars. It should establish a bipartisan board to oversee the plan's implementation. And it should be enacted as soon as possible."

[Sources: thepage.time.com, nytimes.com]

McCain suspends campaign and seeks to delay Friday's debate!

Egads!

Senator John McCain just announced that he plans to suspend campaigning on Thursday, and seek a delay in this week's planned presidential debate Friday, so that he could return to Washington to try to forge a consensus on a financial bailout package.

Shortly after, the Obama camp issued a statement saying the two candidates had spoken on the phone this morning about issuing a statement on the financial difficulties facing the nation, but it did not address canceling the debate.

McCain and Obama have been under pressure to enact some kind of significant change regarding the proposed $700 billion bailout package. 

"I am calling on the President to convene a meeting with the leadership from both houses of Congress, including Senator Obama and myself," he said in New York this afternoon. "It is time for both parties to come together to solve this problem."

It's all very phoenix in the rising, Mr. McCain trying to appear as the one spearheading this call to action, but it was actually Sen. Obama who began the exchange with the Arizona senator.

"At 8:30 this morning, Sen. Obama called Sen. McCain to ask him if he would join in issuing a joint statement outlining their shared principles and conditions for the Treasury proposal and urging Congress and the White House to act in a bipartisan manner to pass such a proposal," said Bill Burton, the spokesman for the Obama campaign.

Democrats reacted skeptically to Mr. McCain's surprise announcement (as they should have), accusing that it seemed like a political ploy to try to gain the confidence of voters concerned about the economy.

"What, does McCain think the Senate will still be working at 9 p.m. Friday?" Gov. Ed Rendell of Pennsylvania said, referring to the start time of the debate. "I think this is all political - I wish McCain had shown the same concern when he didn't show up in the Senate to vote on the extension of the renewable energy tax credit."

It all seems to be a game and an attempt to put Mr. Obama between a rock and a hard place. If he shakes his head no to ol' Mac and goes ahead with the debate, some will think Sen. McCain is the one concerned with solving the financial problems on Wall Street this week and if he acquiesces and agrees to postpone the debate, then he's still simply a follower.

So, here we go again, with McCain going to all lengths to appear bipartisan and maverick in the strangest of ways. Use some sense people. I certainly hope you can multitask, and deal with both things.

Not to mention, this kind of puts a hole in the latest article I've written that goes to print today. Thanks Mac!

FTW.

[Source: msnbc.msn.com]

Bush: "This is a big problem"

President Bush makes remarks outside the White House following a meeting with the Colombia President, defending the government's bailout of Wall Street.

"My first instinct wasn't to lay out a huge governmental plan. My first instinct was to let the market work. Until I realized when being briefed by the experts how significant the problem has become. So I decided to act and act boldly."

"The systematic risk was significant and required a significant response...This is a big package because this is a big problem."

[Source: thepage.time.com]

Pandering to their constituencies like good boys

I-have-7-houses McCain and I've-written-two-memoirs Obama are all about the moolah as of late.

This comes as no surprise after this morning's news.

Democratic nominee Barack Obama insists that the campaign should not be reduced to a "resumé contest" between tickets, but rather a choice over which party would offer a new direction for the nation's economy.

"The American people, who are awfully smart, they're going to be able to make their assessment," Mr. Obama added. "They're going to say, you know what? If we choose John McCain, for all of his good qualities, we're going to get the same kind of government, and if we choose Barack Obama, we're going to get a different one."

As for McCain, he said on CBS' "Face the Nation": "Americans are hurting in a way that they have not hurt for a long time." 

He went on in what I can only describe as some weird reference to the hinterland of his running mate's home state, Alaska. "You know, we've got a very tough sledding to go through."

O.K., that was probably a stretch. But still.

[Source: nytimes.com]

Government bail out of mortgage giants!

Now, I'm certainly no economy expert, but I found this dire enough to post.

According to the NYT, the government is planning a takeover of mortgage giants Fannie Mae and Freddie Mac, which own $5.3 trillion in mortgages. What does this mean exactly?

Well, Ali Velshi, CNN's senior business correspondent and host of Your $$$$$ and Minding Your Business, just gave the economy-for-dummies run down of what's happening here.

It looks like the cost of the government's intervention could end up being tens of billions of dollars and will probably be among the most expensive rescues ever financed by taxpayers. That's right - TAXPAYERS.

The thing is, regardless of your ideological stripes, the move is essentially a necessary one. Both Sen. Obama and Sen. McCain have expressed their support for the plan.

As a result of the government-conservatorship, the cost of borrowing for the mortgage giants should decline, and they will continue to buy and sell home loans.

Make of this what you will people. I am no money maven, but as I understand this is a BIG DEAL. And I know the economy will be of paramount importance for me in the upcoming election.

[Sources: nytimes.com, CNN]