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Live: 24 hours of the Global Economy
The US House of Representatives was under growing pressure to pass the Bush administration’s $700 billion financial rescue package after a modified version was overwhelmingly passed in the Senate last night.
The White House and leaders in both parties will now take a second high-stakes gamble to get the Bill passed tomorrow in the House after the Senate sent a clear message that the plan is critical to avoiding a catastrophic meltdown in the US banking system. It passed by 74 votes to 25.
After the stunning failure of the Bill in the House on Monday, by 228 to 206, the modified version, which contained “sweeteners” to make it more palatable to rank-and-file House members, is likely to be sent back to the lower chamber tomorrow, but its passage is still far from certain and the scene is set for another dramatic vote.
The White House and leaders from both parties, scrambling to pass the legislation before more banks fail, hope that the Senate’s clear ratification of the revised plan will give it momentum and increase pressure on the lower chamber to follow suit quickly. The House, where the plan’s fate is still on a knife edge, reconvenes at noon today after the Jewish new year and where party whips are scrambling to garner enough support before they hope to put it up for another vote tomorrow.
“This has not entirely solved the problem but it moves us in the direction of where the American economy needs to be very soon,” said Mitch McConnell, the Republican Senate Minority Leader.
Christopher Dodd, the Democratic chairman of the Senate Banking Committee, said the bipartisan support for the Bill was a “deeply proud moment.”
Yet despite growing optimism among congressional leaders that the $700 billion package can be salvaged from the wreckage of Monday’s 228-206 defeat, its fate is still in the balance.
John McCain, Barack Obama and Joe Biden — the Democratic vice-presidential nominee — all returned to Washington last night to vote in favour of the modified Bill.
But although it was backed in the Senate, where its passage was always far more assured, the Republican and Democratic leadership in the House, all of whom back the plan, are still wary. None was yet claiming to have won over enough holdouts to pass the legislation and there were risks that the Senate modifications, aimed more at attracting Republicans, could push more House Democrats away from the legislation.
James Clyburn, the Democratic whip in the House, said: “To pick up 12 votes on the Republican side you could well lose 20 votes on the Democratic side. That’s a concern we have.”
Last night’s vote, and the plan then to reintroduce the Bill to the House, came amid a sense that the Dow’s record one-day drop after Monday’s defeat had led to a shift in public mood, and a realisation among voters that the plan is not just a Wall Street bailout but a critical rescue package for the entire US economy.
The calls from constituents railing against the Bill eased off after the turmoil that followed Monday’s vote. “It’s completely in the other direction now,” a spokesman for John Boehner, the Republican House Minority Leader, said.
Mr Dodd said earlier that Monday’s vote had sobered up some House members: “I’m told a number of people who voted ‘no’ yesterday are having serious second thoughts about it.”
The Senate version, aimed at winning over just 12 extra House Republicans and Democrats needed to reverse Monday’s defeat, contains more than $100 billion of tax breaks, including relief for businesses — popular with Republicans — and help for more than 20 million middle-class taxpayers to avoid higher levies under the alternative minimum tax.
To calm voter fears of bank collapses, the Senate plan would also increase federal insurance for deposit accounts, from $100,000 to $250,000, a move backed by Mr McCain and Mr Obama.
At its heart the Bill remains the same — a plan to allow the US Government to spend $700 billion to buy up the financial sector’s toxic, mortgage related assets — which 133 Republicans and 95 Democrats could not vote for on Monday.
While the new provisions might make the Bill more attractive to some House Republicans, it also risks losing critical Democratic “yes” votes from Monday.
Aides in both parties cautioned that the Democratic “Blue Dog” caucus in the House, many of whom backed the plan on Monday, might now oppose it because of the tax breaks included in the Senate proposal.
The “Blue Dogs”, a bloc of 47 fiscally conservative Democrats, have always opposed the tax breaks included in the new Senate version, unless they are paid for by tax increases in other areas. Such “pay as you go” measures are not included.
In a sign of dysfunction between the Senate and House Democratic leadership, Nancy Pelosi, the House Speaker, appeared to have been taken by surprise by the Senate plan, which was introduced by Harry Reid, the party leader in the upper chamber. She released a lukewarm response. “The Senate will vote . . . and the Congress will work its will.”
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How does one find out the list of pork barrel items along with the names of the congressman or woman who proposed it. The auto industry is being told they may not get help while there is 150 Billion of Pork Barrel in this bill. There should be zero pork barrel.
Steve LaVaute , Pebble Beach,
I am outraged at the nerve that congress has to add all the pork to a bill proposed to bail us out of the catastrope in which we find ourselves. I want to see the names of every congressman and senator whose state or re-election chances benefited from this ridiculous pork. Why do we not know?
Linda, Blytheville, USA
this is ridiculous, here all the rest of us are trying to find ways
to cut back and change our way of living and then congress.
acts like a spoiled child, mommy, I'm going to throw a fit if
I don't get what I want!!
does anyone in congress care at all about our country.
jennie, , southport, fl, usa
I would like to know why this information was not made available to the people. Americans have a right to know who was involved in promoting this pork barrel spending. It is time Americans stood up to this type of ridiculous and irresponsible behavior by these politicians. It is time to clean hous
Liz Starnes, Springtown, U.S.
I am gaining a strong sense that this one might have put the American taxpayer over the line and that the mood for a full fleged tax payer revolt agains our out-of-touch, highly partisan Congressional Royalty is very strong indeed!! If "enough is enough" then certainly "too much is WAY too much!"!!
Marlin Cone, Kansas City, USA
I just do not understand how our Congress and Senators (voted in by the people)can agree to any money going to support the pork barrells.It seems the whole reason for the initial bailout was to help those in need not those at the top of the corporate ladder.I would like names to stop their relection
Julie, Merritt Island, USA
I say it is time that the American people revolt!! This is not what the people wanted with this bailout! We did not know that all these pork barrel sweetners would be added, just to get votes!! That is not what the american people want. All that money going to things that do not help the economy.
Keune, Laclede, USA
This is absolutely ridiculous --What ever happened to people being responsible for their actions? If you make bad finical decisions you have to deal with the consequences. Did anyone else pay attention to the lesson of being a slave to the lender in the bible?
Scott E., Tylertown, MS, USA
I want to know who got what for the pork added to the bill! I feel that most people don't like the idea of the bill at all but we understand the need for it. are all votes for sale for a little pork? Sad but it seems that way!!!
janie, jACKSONVILLE,
Shame on the politicians who stooped to pork barrel tricks to get re-elected. May ghosts of our Founding Fathers haunt them until we un-elect them. Shame on politicians who take advantage of America in a time of national crisis. None of this helps, however, if they don't read our words!
Carol Poole, Hanahan, SC, USA
Instead of going after the ones who put in the pork, we as a nation should go after the ones who changed their vote for the bill because of the pork. Its a disgrace that they agree on the same plan but they felt they needed to have their vote bought.
kap, norman, usa
Maybe this financial crisis will awaken enough Americans, without regard to party affiliation to band together and demand the end to croneyism and insertion of multiple add-ons into bills. Vote on one thing at a time, no more bundling garbage with good, honest legislation.
Randy, Mankato, USA
Congress is to blame for this mess and they are adding insult to injury by adding all this pork to the bill. Think of the Country first!! Take a stand do not vote for addtional spending.
E Scott, Clarkston, Wa, United States
People are against the bailout for good reasons! I am a Michigander who has planned out their finances, and lives well, and I have to pay more taxes for people who are living beyond their means! And Michigan, with the highest unemployment and the worst financial situation, is getting NOTHING!!!!!
Combs, Clarkston, MI, USA
Amen to that. Lets put those senators in the spotlight. Everyone should know who put in the pork.
Antonio, san mateo,
As much as I didn't want to pay for the greed that the CEO's and Wallstreet created, I also understand that we can't afford 20% mortgages, 40% credit cards, etc....However I didn't think I was paying for pork barrel games either!!
THE SENATORS THAT SOLD US OUT NEED TO BE LISTED BY NAME!!
Tony D., Vicsburg, MI, USA
Why can't there be a process to do grass roots work here. A rescue plan only creates more drama, and more victims. Take the time to create something that works from the bottom up, for the good of all, or this becomes a temporary solution for a long-term problem. What is in the highest good of all?
Trisha, Rockford, USA
All this Pork and we wonder why our country is in such bad shape,makes one wonder how many Billions are wasted on theses pet projects when it could be going to Health Care and other things we really need. What is it going to take for our Country's leaders to wake up and quit wasting tax payers money
nick jones, mosier, USA
Well I hope the average American can finally see what kind of people are running us. Yes they are running us, never mind that your having problems paying your own bills. That does not matter. You do not matter to them at all. Whats important is that the rich stay that way. Thats it. Just them
fran, hurley, usa
I would also like to have the names of the Senators and the pork barrel they had added. As far as I am concerned the Senator and the company that profited should be considered anti American!!!
Sandra, Lansing, Michigan
Shaun, the American people are overwhelmingly against it because they somehow think that the collapse of the financial industry won't affect them.
Tom, Dallas, USA
Today is a very sad day in America. Another word for "Sweetners" is BRIBES. If a bill can't pass on it's own merit, it shouldn't be passing. Americans were sold out today.
AJ , pompano beach FL, USA
I would also like to know by name the Senators who added the various pork to this bill. If passing this bill was critical to the revitalization of our economy than how in good conscience could these elected officials insult those of us on "Main Street" with adding $100B of pet projects.
Shirley, Syracuse, NY,
I agree! Those responsible for stuffing the bail out bill with pork should be exposed and thrown out on their ear. Why can't we just keep it simple???
Joy Hemmer, Portage, USA
Its INCREDIBLE to me that the american people have OVERWHELMINGLY been against this bill. Yet our "REPRESENTATIVES" fail to "represent" the will of the people. This is unacceptable. This is a threat to our very democracy, the special intersts and lobbying groups have more sway and power than us.
Shaun, San Diego, USA
This is what I want to know.
What senators are responsible for adding the pork?
Please identify what senator goes with what pork.
Also on the house level, who added what pork?
I am an Independant. It makes no difference to me what party they are from. I just want to vote against them.
Mary, Placitas,NM, USA
Don't the Republicans understand that bill not being passed=recession/depression=less bombs to throw at silly little wars?
jay, MULLUMBIMBY, Australia
Pork barrels, and politics with no regard whatsoever for the people. Politicians are criminals at this point. It's a big game.
Roy S., Phoenix, AZ, USA
Desmond taylor, Houston, USA TX
Thank you for expressing my thoughts.
Gone is the America we knew and loved.
Emma, Cannondale, Connecticut, USA
It would appear the pigs in Washington need bribes and payola to save our nation from economic collapse. Are there no patriots left? Taxpayers dumb enough to swallow this "first" bail-out should not be surprised at the next two or three sure to follow. No bill is better than this atrocity.
Jim M, Lindale TX, USA
How about giving the taxpayers $100K each to pay off credit cards and houses. Also, the shopping would begin, and the money would be put back into banks and businesses. THAT is how your revitalize and economy...not from the top down. And NOT with $900!!
Renee, Alsip, USA
Obviously the US government isn't morally competent enough to fix this problem without succumbing to the ever present ghost of pork barrelling. We might see the entire senate thrown out in the upcoming election.
Udo, Melbourne, Australia
Next filing season, let's pay our federal taxes to our home states. We can keep our own wheels turning while our clueless leaders in Washington figure out which foreign military bases they need to close. Face it, folks, it's the money. Our votes don't count for anything anymore.
Danny Maccabee, Vancouver, BC, Canada
Remember the story of Green Eggs and Ham? Just try it, just
try it, you will like it. Remember that. That story reminds me of
Wall Street. Really, I don't think I will like it. Your bailout I mean.
John, placentia, california republic
Wake up America!
The revised bill is an idiot's guide to corruption. You know, corruption, the naughty thing that goes on in naughty countries like Russia and Cuba. A democratically elected House means nothing if you just bribe them all when things don't go as planned.
Jonny Harper, Brisbane, Australia
House members, just say NO, even Hell NO
Tucano Fulano, Big Bear, USA
It is a disgrace that a bill can't pass or fail on its own merits anymore, earmarks are nothing more than a bribe to earn a vote.
Wayne , So. California, USA
I find it unbelievable that such an important decision, affecting the global economy, is being made by people who care more about wooden arrows and nascar racing. Who are these people that have been elected?!!
James, Brisbane , Australia
It reminds me of The Fountainhead. This "new " bill should be shot down. Put more funds into the FDIC and let the chips fall. The greed of these congressmen is egregious, perhaps I was wrong to think that anything more could come from our lawmakers when the U.S. is facing such grave circumstances
KB, Stamford, USA
30 pieces of silver to try to buy some of the honest men? Will they sell their souls and their integrity for a short term gain for folks they represent or are they intelligent enough to see the bigger picture. Property prices will fall US & UK until they find a median. Nothing & nobody can stop it.
Reg, Currently St Lucia, Worried
I thought the House of Representatives was remiss in voting no the other day. Now that the Senate has loaded it up with earmarks for special interests I say
to the House VOTE NO.
Bruce L. Northwood, Washington, D.C., USA
I guess votes CAN BE BOUGHT! So much for representation of "the people, for the people, by the people". I also guess that "fiscal responsibility" is a none issue. Realizing that printing 700 billion is no big deal, but this. . . Smells like bacon cooking!
Richard Myers, Tulsa, Tulsa
Senator McCain saw this a couple of years ago and wanted to take actionb but he was laughed at.
The dems did it by starting quasi gov. lending institution so persons can buy homes higher than they could afford. Now we are supposed to bail them out with pork.
Tom, Leeper, Pa.
Really I think what we need is another "tea party"
Tom, Leeper, Pa.
E. J. S. If you read any bills the funding also includes "and for other purposes. There is where the porks orginates.
Tom, Leeper, USA
Why can't we have 1 page bill, no PORK BARREL, with elected officials, just this once, thinking of their constituents instead of what the can fill their larders with. PLEASE! The next time I vote, it will be for the man on the street who does not owe anyone any favors!! We need new leadership!!
E. J. S., Sacramento, USA
The housing market in the USA turned into a big bubble because cities have a habit of building new office buildings to bring in extra tax revenue, without building family homes and rental units. This forces people into longer commutes, which can only be avoided by trading up in the property market.
Mike, Edinburgh,
I feel the biggest problem with this bill is that it doesn't address the REAL problem, which is lack of regulation. We should taxpayers add monitary fuel to this fire?
Scudder, Columbus, USA
This crash was one of the best things to happen to America, and to the world.
It wasn't disaster, it was pure opportunity. It was a chance to re-balance and re-evaluate.
The markets needed to tumble. House prices need to crash.
This bailout just puts tape over the mouth of the scream.
Tom Franklin, London, UK
sweetners on the bank bailout is just selling your vote and should be stoped v
virginia , leesburg,, usa
A lot of people don't understand the Bill.
Here's what it actually means:-
1. The banks will have LOST about $700 billion, but at least they'll have cash instead of a further $700 billion loss.
2. Uncle Sam will recoup MORE than its $700 billion when the housing market recovers.
Jon Leigh, Southern, France
It is now apparent that the time a full scale TAX REVOLT has arisen. Why should Americans continue to fund a government which squanders every cent which it is given, irresponsibly fails to practice any modicum of fiscal responsibility, and now attempts to resort to socialism to address its failures.
DaveP, Phoenix, AZ, USA
Why don't they use the money to buy the houses, clear the banks' debt and allow the defaulting residents to start paying rent to the Government to recover the money? You then have an ample supply of council housing which means those who can't afford a mortgage don't need to try and obtain one again.
Dan, Epsom, UK
Welcome to the Union of Socialist States of America. All we need now is Glorious Prime Leader Obama to complete the farce.
Desmond taylor, Houston, USA TX
No bailout, people. I've told my Congressman he's gone if he votes for this disgusting legislation. It's already gone from 4 pages to 450, filled with mind-boggling pork, 100s of billions of dollars of swill for swine. We should be hiring prosecutors, not bailing out criminals.
Paul, Morissey New Jersey, United States
part II - and my heirs won't have to worry about how to pay this off. At least they personally won't. Wait a second, isn't that what the scions of Wall St have already done. Wish I thought of this scheme first. No one remembers who the 2nd man on the moon was.
Radman, New York, USA