News Buzz: McCain, Obama, Bush Urge Congress to Pass Bailout; Consumer Spending Dips

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.