How long until the taxpayers need to give them another US700BN to pay their next years bonuses for "good" performance ? The system stinks and all this is doing is giving taxpayers money to pay for the past 10 years bonuses and high living of a few financial scum bags who fleeced everyone.

alan, london, uk

Banks got greedy and made loans to those of marginal means. Those folks took equity out of their houses at peak of the market to buy stuff and now upside down in their loans their ARM adjust up, they stop paying their mortgage, the bank is left holding a bad note. Who's responsible - everyone else

Bobbie, London, UK

One wonders who they are trying to save, us or them!

Graham, Littlehampton,

Re-balance by itself? Don't think so. It would cause more damage in world economy. I think that this liberal order we're living in must be revised.

J. Markovski, Brasilia, Brazil

Old Mr Burns rushes back to Warshington as he calls it.... Why?
Whats he going to do?,He couldn't balance his check book. Barney Frank and Paulson have this business already sorted and all that McCain is doing is a stunt to get out of facing a superior Obama in the face off on Friday

Peter, Vancouver BC., Canada

Such smugness amongst friends !!!!!!!!!!!!!

IAN PAYNE, WALSALL,

It sounds too familiar with the US strategy with most recent Iraq invasion!

It may be easy to win the battle, but the war will be an eternal struggle.

James, London,

Surely a debt for equity scheme would have been a better idea? At least that way the tax payer would get something back once Wall Street's back on it's feet.

Neil, London, UK

The Commies have taken over Congress!!

Andrew J Iddon, Brockley, UK

So, hmmmm !
WHERE ARE THE THIEVES who took the money ?
Can't get it, how you can lose such money !

koko, Aldershot, UK

America is now a Communist country, The state own's the Banks, and a huge housing stock losing in value. Are they also going to bail out other businesses too? or do they go bust because they are no longer profitable??. We are in odd times. This Globalisation, is going to cripple us all.

Daphne Kenward, Cambridge, UK

putting it shortly the moneybags put a gun to the US government's head- pay up or we blow your head off- funny way to run a country.Goodbye free- market capitalism(and good riddance).A major precedent has been set. are they going to buy up every gambler's IOUs too?

peter c, Devizes, Wessex

USSA. A centre right government undertaking nationalisation on a massive scale.

John Wood, Basildon, Essex

America bogged down in Iraq/Afghanistan and shooting across the Pakistan border. Housing market and financial crisis. Illegal alien invasion across the southern border. Trouble with Russia and Iran. Kicked out of Latin America. Bush still a free man. Two months to go. Help!!!
Bob

Bob, Bradford,

The banks keep the good stuff. Hank gets $700 Billion to buy their toxic assets. The rich get no poorer. The poor get poorer; the Middle Classes pay for it and the Senators and Congressmen keep their jobs.

So now we can all get back to the issues that really matter like Mrs Pain's hairstyle

Dr Richard Bruce , Cape Town, South Africa

The privately owned federal reserve was apparently near broke - instead of making those pay who set all this in motion, once again it'll be the little guy who pays in taxes, job losses and foreclosures. No bailout for them. As Laura rightly says, this won't make a blind bit of difference either.

Em, London,

The banks uses taxpayers savings to lend to a taxpayer but he can't repay the loan so the governement steps in and issues more taxpayers money to the banks to lend to the taxpayer who can't repay the loan.....

I can't get this to make sense...miracle money?

Ian Skelly, Hemel Hempstead, UK

People borrowed money for a home but mortgage lenders knew better. But they persuaded people to buy homes and get mortgages to enhance their own compensation packages. Let them suffer the consequences. Give the people a bail out and restore confident among the people, they will drive the economy.

Naleen Lal, Northern California,

This is not a bail out, this is a postponed American disaster, that will fully unfold next year 2009.

The United States is insolvent. America is borrowing money to by oil from the Arab world, borrowing money to buy goods from China. The currency, worthless, Blair told him about housing boom in UK

Daphne Kenward, Cambridge, UK

Why have politician’s on both sides agreed $700B snap expenditure with nothing in return?
Answer:
They get to remain in control and many of them are bankers anyway. The have saved their own cosseted skins, at the expense of every working man and woman in America.
Joe soap 0, Gordon Gecko 1.

Pat, Coromandel, NZ

Moscow, Venezuela, Cuba et al must be rolling around on the floor with laughter. The Great American Greed Train, derailed by its own not-so-free market forces, while Bush protects his personal investments. $700b to Wall. St. $25b to automakers, $? Freddie Mac, $3b big oil. The US is dying, fast.

Richard, London, UK

For me, the real question lies in how long these debts
can be hidden away and If they can't be sold back, its disaster for the public sector.

Nothing long term has been solved here, the same flaws
exist, ie " investment banks ", whatever the new name is.

M Walker, Bromsgrove, Wosc

It would be socialist if America got free health care or free college education. But socialism definitely isn't about bailing out Wall Street! So they lose again.

John Baker, London, UK

Since the government is going to bail out these companies; shoud'nt the government give those who lost their homes to foreclouser back? I think this whole thing is a SCAM and the american people will pay the price forever. Our government looks GREEDY and Evil and taxpayors look dumb.

Kellie, Cleveland, us

Sounds like that our generation could do whatever we want and just shift the debts to the next or even our grandchildren ! Who cares about whether its money, CO2 ! We are a bunch of irresponsible parents !!!

Ting, Staines,

has the chance been missed to shackle the banks in perpetuity? As they have had the nation plodding under their yoke of debt slavery for the past century the chance is here to turn the tables and have finance subservient to the nation, not master of it. Seize this opportunity - it may be the last

j dickinson, middlesborough,

Bush is a modern day Robin Hood in reverse. He steals from the poor masses and gives to the rich few. It's enshrined in the American constitution that when a government become corrupt it must be removed by the people. So let's go America, what you waiting for?

John Baker, London, UK

1) Let banks fail like any poorly run business inevitably will.
2) Stop "Bonus" culture of sales for growth.
3) Await the inflationary pressures as money becomes valueless.

This is about sustainability in all but name. If we use what we don't have it will go wrong. This is a ticking bomb.

Ian, Brighton, UK

who will pay for this huge debt? feds are going to print more money,hand it over to the us government and then the poor taxpayers for the interest.does anyone have a clue what the implications are? does anyone know or care what happens if us government defaults any interest payments to the feds?

ebbi britt, valencia, spain

Sour or Soar it does make a little difference.

James, Torquay, uk

Or option 2. Give the $700 billion in rebates to Americans investing in alternative energy. For example, $2,000 rebate for a $3,000 solar thermal water heating system, saving 75% of a $400 annual bill. Ask the Congressional Budget Office to evaluate scenarios: investment, jobs, productivity, wages?

Hugo van Randwyck, London, UK

Crowning Paulson as King Henry, master of the coin, is not going to end this "crisis". This is a blatant manipulation of the American people, using the same fear tactics deployed before the invasion of Iraq, to establish state corporatism (fascism). This is America's death knell.

Jennifer, Granbury, TX/USA

Dear American Taxpayers,

Thank you for propping up the poor business practices of failing finance companies, this will be a considerable boon to my already rosy financial well being, at a cost of ~$5,000 per US family.

I'd feel guilty but I'm not responsible for the dumb decisions of others.

John Louis Swaine, Colchester, United Kingdom

A 2% rise in the Dow index within 2 hours of the market openning, is hardly a soaring market!!.

pete, Banstead, uk

Fine until they find they need another $1,000,000,000. Remember bankers do spend whatever thay have, as they never had to earn it in the first place.

Chris, London,

I do not understand what the problem is. Why not just print loads of money and if things get a bit out of control, just blame it on Zimbabwe and Robert Mugabe!

Lore, Barmouth, UK

Capitalism falling , ordinary folk having to pay for it all. When we've all had enough it will be the Markist revolution , or perhaps Chinese communist Marxism.

Ian, Belfast,

I'm a citizen of the U.S. My country has not been the same since George Bush became President. Know this: millions of Americans have no confidence in this Adminstration, no confidence in those who say they are acting in our best interests. Why should we believe anything they say about this bail-out?

Judie, Los Angeles,

It won't be the first time we were 'sold a bill of goods down river'. We were fleeced by the Roosevelt administration and their socialist buddies, so we're probably in for a long hard slog before common sense will prevail once again, after people have had enough of it.

Henry, Warrenton, Missouri

The costs to the 'ordinary working folk' will be much greater if the plan does not go through. Their pension funds will reduce by more than $5,800 alone. Letting companies fail just to give a black eye to the bankers is akin to cutting to cutting your nose off to spite your face.

ipd, Tokyo, Japan

I thought the American people were leaders in justice? Why aren't you standing up to your corrupt leaders? I would have expected nothing less than countrywide riots from a disaster of this scale.

Howard, Manchester,

I think no bailout. Let the greedy bankers find new jobs, ones that will teach them the value of money - God knows the real workers know its value. Why should the have-nots support the haves?

Michael, Corona, united states

It is not at all astonishing to see the broad smiles on the faces of Paulson and Bernanke, for they have just won the worlds largest tax free lottery, without procuring a ticket!

Leo Collins, Dayton, Ohio, U. S. A.

"...our politicans gambled our money."

Actually - a herd of greedy, optimistic mortgage brokers gambled our money some time ago.

They lost - now we get to pay the bill.

Dan, Metamora, IL

"no one forced people to borrow the money when people tried to coin it off the property market"

Bit disingenuous, David. If stupid amounts of credit are available, prices will be bid up. If you decide not to stretch, what happens? You have no property, and inflationary bailouts erode your savings

John Mack, Aberdeen, UK

Totally unbalanced. Totally unfair. These governments have just got too much power and they'll do anyhting to keep it. There WERE other options which were suppressed.
Its utterly insane.
Civil Disobedience and Revolution are the only sane choices left

David P, Leeds, England.

The proposed bailout is stupid. Instead Congres should add more funds to the Federal Reserve and Treasury which can then lend more to financial institutions. The Fed shoudl also at its next meeting reduce the discount rate [at which it lends to banks] to 1.75%.

Gemma Whitley, New York, USA

Americans didn't agree- our politicans gambled our money.

Amy, Columbus OH, USA

Look at the smirks on their faces. The foxes have just had another chicken raid.

These people aren't clueless or incompetent, they know exactly what they are doing.

Lorraine, Auckland, New Zealand

Paulson should be fired and stripped of all his assets. No financial bonuses or retirement pay-offs to senior CEs are needed for a return to sanity.

m wilson, bidache, france

The only threat faced by the world's economies is from those who gamble with them. This is $700 billion down the drain, funded by ordinary people, many of whom struggle to live while those they are saving will never know what it is to be without.

Laura Roberts. Spot on in every respect.

Richard Crow , Warsaw, Poland

Wealth is not destroyed - it is merely transferred.

US taxpayer > Wall St.

This is the greatest swindel in history.

And for those of you who are thinking this will re-inflate the housing bubble - in wont

L McKay, North Shields, uk

the party is over. Goodbye America, Hello Chinese Empire! So predictable.....

nick, London,

Instead of the US taxpayer stumping up billions now, why not just have the Fed act as an insurer against the garbage going bad - basically a replacement for the likes of AIG.

Then they'd only have to pay when the bad debts actually go bad, which isn't a forgone conclusion.

Pank Haulson, Washington,

Is there no longer any accountability in this country? These massive companies are being rescued for failing. Many were deemed 'too big to fail,' but their revenues fell precipitously.

This move perpetuates the free-market problems that led us to this point in the first place. End Deregulation!

Eric, Laguna Niguel, California

Alex Samad I completely agree. Where is the accountability here? Why aren't the people who have made this happen being asked to account for the terrible decisions that have bought world financial markets to their needs?

$5300 per person is outrageous.

Olly G, Melbourne, Australia

President Hoover in 1930 created the Reconstruction Finance Corp to bail out banks and insurance companies, but the US banking system still collapsed in 1933. It didn't work then and it's not over yet

Mary H Blewett, Lowell, MA

'It's a Wonderful Life'? Hearing news of the US Congress debate on whether to bail out the banks to such vast sums of money was a wake up call to the seriousness of the situation.....but strangely it also reminded me of the plot of one of my favourite films 'It's a Wonderful Life', where Jimmy Stewart's small town bank goes down the pan.....but the bank, and the community livelihood is saved by the town's people pledging to donate their savings and Christmas funds......

emma, Worcester, UK

I'm so glad to see the world knows what is going on in America, to bad many Americans don't. As for us who do, we have no power. Thanks go to Clinton, Bush and Congress, The money goes to the wealthy.

Dr. Randy Smart, Arroyo Grande, California, USA

Either the bankers saw this coming or they didn't. In the first case, they were immoral, in the second they were incompetent. In either case, they were radically undeserving of their rewards. Bonuses placed in escrow and drawn down over twenty years would align traders' interests with investors'.

Jason, Chelmsford, UK

Clare Griffin- spot on. The irresponsible, immoral gamblers in Financial Institutions have led us down this dark tunnel. Bankers making indecent profit in order to boost their horrendously gross "bonus" payments still get paid even when they lose! We all lose for their greed.

Martin, York, UK

Phil London

Sorry your wrong with you assesment, as a hard working house owner i dont care what its value is only what i owe, i do care what my children may have to borrow and if they will ever have a family life themselves.
It wont be a slump now but a crash and recession - 100% Certain.

Peter, Aldershot, UK

Where was the great british hope Gordon Brown? Pleading to the UN a world leader in deed! He said he was focused on UK credit problems obviously not focused enough?

steve tea, manchester, cheshire

This will prevent more banks from failing - at the the expense of ordinary people - but will do nothing to prevent further economic downturn or the crash the the property market. We are now heading for a long and painful recession.

Michael, Oxford, UK

What with American mortage defaults running at $20 billion a month, this aint gonna last long! It's what is hidden in the small print thats the worry!

stivey, edinbrgh,

It was a pretty good country, while it lasted. I wonder if the world will ever see anything like it again?

Rob Barry, Hamden, USA

This is not a just banking crisis.
The foundation of the crisis is the collapse of the West’s economic business model.
The overpaid workers of the Western service economies, financed by the wealth of the petroleum countries; to invest in the cheap production in China has been exposed as unsustaina

mike, santa ponsa, mallorca

About time. Even if the initial impact is small, it will hopefully raise the confidence of investors and bring back some stability to the markets.

Sean-David Hughes, London, England

Yet another reprieve for the cancer victim! The conciliatory display of unity warms the heart.

daniel, London, UK

What about responsible citizens who have not contributed to the irresonsible borrowing, but are forced to recoup the economy with taxes from their meager salaries. Why shouldn't these companies be bailed out by the billionaire executives? They only benefit from this ordeal, while we become poorer.

Heather, Cleveland, U.S.

hard working people can't afford to buy homes Phil!

George, london, UK

They will not balance the debt, and they will not achieve stability. The money will disappear very fast indeed. There will be not one single honest public audit to show where it goes. After a very short time indeed, there will an identical demand for even more. Then will come the really scary stuff.

Mark Grindell, Shipley, England

So because people are deleveraging and not taking the risk of investing in risky banks, the charlatans in charge have decided to take this cash by force - through taxation. This is not capitalism. This is facism and the worst 'solution' possible as those at the sharp end are squeezed even more.

Dan, Brighton,

Bad news for the "hardworking" non-home owner dreaming of maybe one day owning a home.

Why should those that rent subside the profligate?

What is the incentive to save, to borrow within ones means?

Mark, Frodsham, UK

reminds me of japan ,the government had to bail the banks out and property market was over heated, took a decade to get the economy going again because it took so long to put together a bailout plan...

shiko, london,

Phil,London

$700 billion is mearly the tip of the iceberg and changes nothing

The housing crash is still on and quite rightly so, why should my children pay stupid money for a house so people like you can "consolidate" after splurging money you haven't got

I sold in 2006 as I knew it was coming

Richard, Ipswich,

700.000.000.000.-$ for a short term measure to stabilise the banking system. It will not save the economy from slowing or prop up house prices. It will only prevent immediate and catastrophic failure of the banking system. It's a huge sum just to buy some time.

stephen conner, london,

An absolute disgrace. The greedy, the profligate and the stupid are the only ones to win in this ponzi scheme. With the American taxpayer as the last in line as "greater fool". The people who played and lost have now won and those who refused to play are the only real losers!

Claire Griffin, San Francisco, USA

What happens when the $700 billion is salted away and the market is still in freefall? With such a massive handout no commitments have been made by the recipients.

rob, ashbourne, uk

So the poor are loosing their homes but as tax payers they are suitable to fund failure.America and Bush you should be ashamed.Disgusting!

Dave Bridge, Southport, UK

Somehow loaning money to the poor has become greed once the poor can't pay it back. Low income home ownership was once celebrated by politicians who forced banks to loan to “sub prime lenders”. If they didn’t, they were accused of being... greedy.

Daniel Hoesing, Omaha, USA

Looks like bush grabbing the money from the poor to pay the rich. The law makers/politicians are lining their own pockets.

Why are they receiving payment for failure !

Alex Samad, Sydney, Australia

"They used to tell me I was building a dream, with peace and glory ahead,
Why should I be standing in line, just waiting for bread...
Once I built a tower, up to the sun, brick, and rivet, and lime;
Once I built a tower, now it's done. Say, brother, can you spare a dime?"

Scott Benowitz, Rye, New York, U.S.A.

ha hah hahahah free market is dead long live free market

Anand, sheffield, uk

what happens if this does not work?
what out landish plan will they come up with?
confiscate people's gold.
i dont believe for one minute that the people who got the economy into the state that it is, are going to be the ones to save it. it defies all logic.
Besides $700 billion is not enough.

michael fensome, cardiff, south wales

The time has come to dump globalisation.
Don't let America bring down the globe.
Don't let America drag the world off to WAR.
Govern our own country. Protect our economy.
Don't lend America any money because they will default on their debts by next year. Its time we had a leader who can lead.

Daphne Kenward, Cambridge, UK

Absolutely insane. The fox was in the chicken house and Congress just threw in a few more chickens.

Carol, Derbyshire, UK

Blimey, when did the good ol' US of A become socialist? Perhaps they'll start subsidising tractor production, too.

Frank, Guildford,

Can you believe this?
Remember what he said the Irag <liberation> was going to cost and what it costs today. 9/11 was an outside attack and it's offensive for McCain to use the reference. This attack is of their own making only this time we all know who is to blame.
For the moment TG for the Euro.

Noel, paris,

I am pleased for all in the West that Bush has pulled this off. It would be a real tragedy and waste if ANY of the money went to pay enormous bonuses to the folk who lost it all in the first place. Please spend wisely to protect business, homes and jobs, not ego's

M Ford, Derby,

Bush is doing a runner out the back door with America's money - stealing from the poor and giving to his rich friends right up until his last moment in office. This is basically what is going on in a nutshell. He's not 'bailing' out anyone but the wealthy.

Mary Allen, Enfield, UK

The privately owned federal reserve was apparently near broke - instead of making those pay who set all this in motion, once again it'll be the little guy who pays in taxes, job losses and foreclosures. No bailout for them. This won't make a blind bit of difference to restoring confidence either.

Em, London,

Classic......

Profit is privatised.

Debt is nationalised.

The Free money market at it's finest.

Adrian Jones, Whitehill, UK

Bad news for those wanting to benefit from a crash; good news for hard-working homeowners who have been concerned about falling values of their homes.

phil, london,

Watch where they put the money alright - most of the protagonists are out of office in a few months...

dave hall, Stafford, UK

Or we could just let the world economy collapse Laura. Whatever happens it will be wrong in most peoples eyes. Fine, there has been irresponsible lending but no one forced people to borrow the money when people tried to coin it off the property market. Lets start thinking positively people. Good Job

David, London, UK

Welcome to nationalised and state-controlled America...

Victor, Moscow,

Hey,
Watch where they put the money, that's the key. Or they will be asking for more; probably higher, in the next few months. I get the feeling, this gets nowhere.

Sylvester, Amaigbo, Nigeria

All this constant up and down profit taking then selling by Bernake and Paulson, their friends in Wall Street and London.... Soon their will be no money in the system to take on the upward trend and the lot will collapse.... from within. I wonder what will happen then? What happened in 1929?

Austin Tassletine , South West, UK

The Democrats shouldn't worry about this stunt from the McCain camp. Obama has responded well, and will be able to claim ownership of the modifications to the rescue plan, including curbs on the salaries of the culpable mortgage-lenders, and protection for ordinary mortgagees.

Benjamin, London,

Catastrophic.

The markets were falling for a reason. That reason still exists, all this does is artificially prop up failure.

The market should have been left alone to re-balance by itself. $700 billion to compensate failure, nothing in return when they profit.

Laura Roberts, London, UK