News Buzz: McCain, Obama, Bush Urge Congress to Pass Bailout; Consumer Spending Dips
After Dow loses 778 points, Bush says $1 trillion loss on Wall Street tops $700 billion bailout cost
Candidates, Bush Urge Reviving Financial Bailout: Presidential candidates John McCain and Barack Obama, as well as President Bush, asked Congress to reconsider the defeated $700 billion bailout, arguing that inaction would severely damage the economy. The candidates proposed increasing federal deposit insurance to $250,000 as one potential improvement. Wall Street was still absorbing the record 778-point drop yesterday after the bill was defeated 228 to 205. Bush pointed out this morning that the bill's $700 billion maximum was dwarfed by the $1 trillion lost in the stock market plunge.
Consumer Confidence Takes Surprise Move Upward: A new report by the Conference Board, a private group, showed a surprise tick upward in consumer confidence this month. In early trading, the Dow rallied on the news, despite the group's caution that the measurement was taken before the failure of the bailout and the resulting stock market plunge. In addition, the report showed consumer spending and other economic indicators to be weak last month. Analysts are particularly worried as the government's stimulus payments, which added up to $93 billion through the summer, have now ended. Consumer spending in August was the weakest in six months, and while personal incomes were up, after-tax incomes dropped by 0.9 percent from July.
U.S. Official: 3 Pirates May Be Dead in Shootout: An apparent shootout between quarreling Somali pirates on the hijacked Ukrainian cargo ship Faina killed three of them, a U.S. defense official said. The pirates' spokesman disputed the claim. American ships have surrounded the pirates, who are demanding a $20 million ransom for the tank- and weapons-laden vessel. U.S. officials fear that the armaments may be sold to Islamic militants in Somalia.
Reader Comments
Retaliation to the managers of the failed companys
How can we spend our tax dollars toward failing companies and managers that are making millions while their companies are being miss managed. If home mortgages are failing then why is it right to pay these debts by those who plan badly but not fair share to those who are managing their accounts. Sometimes money is spent to get a quick fix but does not build a foundation. This country has paid dearly to the wealthy as the companies are closed and manufacturing is shipped overseas. Its always the fast buck but we are losing the durable buck. If the American people don't have jobs they can not spend money nor can they contribute to the tax dollar Also if you have foreigners that are not keeping the money in the US and sending it to their families overseas or South America. We have ridden this flame of insecurity for sometime why have our senators neglected to monitor the market and its management. Has the government taken any cuts from their pockets. Please lets fortify our country's stability of financial strength by developing stronger guidelines to wealthy managers stripping their company's wealth and strangulating the main street population.
I am just a simple married 50 something factory worker for a company that has survived by the owners taking part in saving their company. My position is a Maintenance Manager of 15 years at this company and 15 at a company prior. My wife and I have been married for 26 years and we have one son at 24 years She has been at the same company for over 30 years being the only place she has ever worked. Just common folk and fortunately at this time we have a job but are certainly feeling the stress of the economy. Lets put the simple logic back into this country to develop more practical balance to managing the economy. Our Senators need to rally to the common cause and step aside to the wealthy Lobbyist and remember who they are working for. They have promised to use their knowledge and position to mange the country for the rights of all Americans not a few.
Bailout
To truly have a bailout that will stimulate the economy, pay off some of the mortgages that the average peson is holding. Then, all that house payment money will go for appliances, furniture, new cars, college educations, etc. Banks will have operating capital to lend again. If we simply give or loan the money to the banks, it will be added to the black hole they already created. If mortgages under $100,000 are paid off (How may for just one billion!) miliions of dollars will be added to the economy EVERY MONTH. House payments will be spent, manufacturing orders will be up, people will still borrow for cars, etc. The economy will really be stimulated, saved, bailed out. And Main Street will finally feel they are not the economic slaves of Wall Street.
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