Congress promises quick action on bailout package by Paulina Neshybova

Here we have some nwes on the stock market in U.S. The government promised to create a new bailout package that would buy all the bad assets, as mortgages for instatnce from banks and investment companies. There is a possible plan made by treasury Secretary Henry Paulson and Federal reserve Chairman Ben Bernanke which they want later to deliver to lawmakers.Even though they expected to get it on Friday, before Congress election, it did not happen. But they still plan to work as quickly as possible.
This turmoil bruised U.S. economy very badly and also pushed the unemployment to the biggest rate in the last five years.
According to Scott Fullman, director of derivative investment strategy for New York-based institutional broker WJB Capital Group, the market itslef and all the companies are not out of the woods now, but the trend is slowly moving forwar and positively. The biggest advantage of the government hepl is, that they are trying to put the the banking industry together as a whole and not separately help individual companies. It is kind of a new beginning for banks and other investment companies, so they can clean themselves from all bad mortgages and loans.
The crisis began by lending money to home mortgages during the housing boom.
But the market suddenly turned its direction and the prices of homes began to faal. Finally people had bigger mortgage than was the real price of their home. Then the financial problems began to spread globally and companies racked up multibillion-dollar losses on soured mortgage investments which finally broyght down the national economy.


related story: http://news.yahoo.com/s/ap/20080919/ap_on_bi_ge/financial_meltdown;_ylt=ArprK8maKF6ESYEq06IYn9Ws0NUE

by Paulina Neshybova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>

edited by Beata Biskova