Chris Cantell Discusses Markets: $700 billion rescue plan broke apart by Magdalena Rosova

A $700 billion rescue plan for the U.S. economy failed Thursday night, only few hours after lawmakers had declared a reached deal. Henry Paulson, Treasury Secretary, with Ben Bernanke, Federal Reserve Chairman, hurried to Capitol Hill to try to rework the proposal to detain the economic collapse.

Key Congress member agreed Thursday on a multibillion-dollar plan to save country’s economy from disaster. However, meeting with President Bush, the two presidential candidates Obama and McCain and other congressmen brought many new conflicts. What’s more Republican leaders denied there was any deal at all.

Nearly all Washington’s political power met at one long table in a small West Wing room in White House. Obama and McCain were at opposite end or the table and Bush as a host in the middle. The visitors left the White House without giving a talk to media.

Dealing with the crisis is decisive for both Obama and McCain. Obama wanted to fit for the duty and show the voters his presidential qualities. McCain tried to look like the one who is directly dealing with the urgent crisis but he risked being seen as impulsive and craven when he asked to postpone the presidential debate to fully focus on the crisis.

Six days of intensive deliberating on the case, weakening of the Wall Street and nearing presidential election caused a confused atmosphere around the plan.

Decision of influential lawmakers was announced at midnight, Bush administration got only a fraction of the money it asked for.

Republican Sen. Mitch McConnell said that they "must continue to work together quickly to protect our economy."

The plan’s aim was for government to buy mortgage-based assets of shaky financial institutions to save them from ruin which would cause home foreclosures, closed businesses and numerous lost jobs.


related story: http://www.timesonline.co.uk/tol/news/world/us_and_americas/article4837675.ece

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova