A $700 billion financial rescue plan was sent to Congress Saturday, and Democrats moved quickly to propose changes—including possible help for homeowners and a salary cap for CEOs.

 

Democrats also are pushing for a new $100 billion economic stimulus package, although it's not clear if that would be part of the Wall Street bailout or be voted on separately.

 

The Bush admistration's plan to move toxic mortgage-related debt off the balance sheets of U.S. banks and other institutions—and into a massive government portfolio—represents an all-out attack on the worst financial crisis since the Great Depression.

 

 

Under authority sought by the Treasury Department, the government could purchase as much as $700 billion in mortgage-related assets from U.S.-headquartered institutions. The Treasury, meanwhile, is floating the idea of having Wall Street asset managers oversee the toxic debt, CNBC has learned

 

The participation of banks in the problem loan pool will be "primarily American" with some participation by US-affiliates of foreign banks, Congressional leaders told CNBC. Foreign governments would not be eligible under any scenario currently under discussion, they said.

 

Congressional leaders also said the Treasury's initial proposal "has nothing in it" as of now because Treasury Secretary Henry Paulson is pushing for maximum flexibility.

 

The legislation also does not currently include warrants for the government to take stakes in participating institutions, as it did in the AIG bailout, these leaders said.

 

There is a very strong push from some Democrats to include salary restrictions for CEOs of participating financial institutions. But Paulson is resisting the idea, calling it a "poison pill."

 

Democrats also are seeking to include something for "Main Street" in the bill, such as relief for distressed mortgage holders.

 

House Speaker Nancy Pelosi initially was inclined to accept Paulson's wish that a second economic stimulus plan not be included in the bill. But some Democratic members are pushing back, trying to get it attached in return for support.

 

The outcome may hinge on how many Republicans defect and oppose the package. The more Republican who vote no, the more Democrats have leverage to insist on their terms.

 

So far, Republican support has appeared reasonably strong, but that could change quickly as the jockeying in Congress continues.

 

 

The Treasury's bailout proposal is just one of a series of measures unveiled in the past few days as the Treasury and Fed try to unfreeze credit markets and prevent a growing storm that could engulf the global economy.

 

http://www.cnbc.com/id/26803296

 

Funny how 200 billion dollars in bonuses were given out in the last decade on wall street. Were wasting billions of taxpayer money to bail out greedy men while they make out like bandits with tens of millions of dollars and our government moves closer to socialism.

 

Were printing new money to afford this, which will cause inflation. Let the market win, let it teach wall street not to be so greedy and the people who took out the loans not to be so greedy. By doing this, we'll just cause the same problem in the future and no one learns their lesson.

I dont think the democrats are gonna win the next election.

Even with the center left media in Spain and the BBC, they dont look convincing !

 

 

With the above subject I think the US and UK will be looking at least 10 % inflation in a years time with these bailouts.. !

Not just the U.S. and UK, the global market is in real trouble. The Euro is like the dollar not based on gold, you'll have economic trouble and inflation too because like our leader, most of the world was foolish with their central banks.

 

In America we have privatized profits and socialized losses. When these companies with CEO's that have close relationships to both dems and republicans they keep the profits and when they fall on hard times we socialize their losses and the average american pays for it. Not the people who received part of the 200 billion in bonuses given out in the last 10 years.

Very true, I was thinking to myself today privatisation of public utilities was not such a good idea after all. As at times like this contributory factors, for example fuel and food crisis we are going though may have not happened.

Our governments would have saved money when things were going good, and would have been able to absorb or even off set the bad times completely.

The only sector that possibly needed privatisation was the telecoms sector, but even that if the goverments were willing to invest and let in competion they would profit of the only sector I see that will have some sort of stabitity of the the coming years now.

 

 

I think now I am just repeating what you have said, a mistake our governments have made is deregulation of banking loans, mortgages etc add more inject fuel into economies silly short term measures whereas if they would have just waited a couple of years for what could have been just a slow down has now turned into financial melt down, we are praying for a mild winter in europe infact I think the whole world is, as if it’s a bad one… oh dear. We are gonna be in the shite.

 

We wont be able to afford to fuel our homes, or put petrol in our cars. Even darker times ahead.

Even darker times ahead.

 

Sadly that is true

With the above subject I think the US and UK will be looking at least 10 % inflation in a years time with these bailouts.. !

 

If you look pass the 'official' inflation figures the governement put out and look at the unofficial real-life inflation figures, you would see inflation is running at way over 10% already.

 

How often do people actually buy a new car?

How often do people actually buy a new washing machine?

How often do people buy new plasma TVs?

 

Not often, so why are they included in the inflation figures, just to keep the real rate down.

The U.K. should join the Euro

The U.K. should join the Euro

 

Isn't the pound doing better? Plus it does not matter, the current system of money is similar to the US's and were all screwed for using paper money. The artificial system the Euro has will collapse.

2 years ago it was 1.6 euros to the pound, now its 1.19 to the pound it makes my trips back to UK cheaper than ever before :D

I think the $700 billion financial rescue plan is only a solution for a very short time. I wonder how the US government wants to finance it. First choice: They could raise taxes. On the hustings? I doubt that! Secondly, expenditure cut? The amount is too much for this! To actuate the note printer? This will cause inflation at the end. Sooner or later US citizens will feel the upcoming recession especially in regard to retirement pension.

 

I only wonder how the US finance minister could dare to ask us Europeans and other countries to participate in this project? What cheek! US banks put money in their own pockets for years and now e.g. the German tax payer has to come up for the expenses? No way!

I heard someone say if they were to take the 85 billions and divide it up to everyone 18 and over, we'd all get almost 300,000 a person. Seems like a better answer to bailing out the rich corrupt morons. Why don't they just pay off the houses that were foreclosed on and pay off the ones that are in about to be. That way the tax money helps the taxpayers. But Obama and McCain and others in power are in bed with these companies and will do anything to help them at the cost of average Americans. So much for a maverick and so much for change, eh McBama! In their eyes the rich corrupt come first, then after that them and maybe down the road the average American, but by the time its our turn our leaders are broke and ready for re-election so they talk of change or being a maverick and foolish American fall for it and elect the same morons into power just because they can talk well. WE GET WHAT WE DESERVE I GUESS.

Were screwed!!!!!!

Yes we are. But we are to blame partly for this mess. But do not worry, the corrupt in power and on wall street will make it through these hard times, they might not get as many BMW's as they like but they'll survive. And we'll elect their friends to keep them wealthy with the promise of the presidents helping us. For the rich will always have McBama's to pay them taxpayer money for their corruption!

Oh I'd suggest learning Russian or Mandarin Chinese, I sure am.

Oh I'd suggest learning Russian or Mandarin Chinese, I sure am.

.........:stunned:.......I know ur right!!

и точно

Nyet! ;-)

If one good long-term side-effect comes out of all this, I think it will spur the American pubic to action to force reform measures upon the political scene in the US & it's kick-back mechanisms, and straiten at least some of the worst behaviors out. Ironic that it takes an economic derailment to make plain the need for reform.. I'm still opting for an amendment to the US Constitution stating our natural right to fair elections and fair candidate contests, and caps on the money to keep the wall street con-artists from having such corrupting influence..

The world sucks and we're all gonna lose our jobs and homes.

 

 

Now get over it and buy some farmland while you still can.

The world sucks and we're all gonna lose our jobs and homes.

 

 

Now get over it and buy some farmland while you still can.

 

My family owns thousands of acres of farmland in the north, glad they never sold it.

Nyet! ;-)

If one good long-term side-effect comes out of all this, I think it will spur the American pubic to action to force reform measures upon the political scene in the US & it's kick-back mechanisms, and straiten at least some of the worst behaviors out. Ironic that it takes an economic derailment to make plain the need for reform.. I'm still opting for an amendment to the US Constitution stating our natural right to fair elections and fair candidate contests, and caps on the money to keep the wall street con-artists from having such corrupting influence..

 

NO you are wrong. It will spur people to Obama's side or McCain's and no change will occur. The same corrupt parties and politicians will stay in power and we'll just blame the party in office when something goes wrong and vote the other equally bad party into power. No change will happen, until we throw out BOTH parties and our whole government. If you want change but are not willing to vote for it, you're like most Americans. We'll complain but in the end we'll elect the same corrupt leaders and say we want change.

 

Our words and actions are the complete opposite and were the only ones who will pay the price.

 

Reform will not come until we cause it, by voting for either party we are voting against any refrom

 

It's like being against something but voting for anyways. Thats exactly what people do when they talk of this change and reform but vote for the same two parties. You're vote for Obama and someone's vote for McCain are one more vote in the way of any reform and our nation being fixed.

 

Until we learn to throw out both parties and our leaders and stop voting the exact same people in, we will be screwed. Sadly no one has realized this and never will, thanks cnn and foxnews.