Congress, Interrupted by Milota Sidorova

It’s been officially declared. Instead of planned buy out bad assets from the banks, Congress will process the alternative to spent $250 billion to buy out the stakes to bolster frozen lending. That’s what Treasury Secretary Henry Paulson said on Wednesday.
Meanwhile there has been more news coming from Capitol Hill. And they were not that lucky at all. Democrats may count it a failure to get Congressional ‘no’ to support desperate automaker industry. House Speaker Pelosi was urging immediate passage of $25 billion in emergency loans for troubled General Motors and Ford Motors Corp.
However, Senate denounced using the rescue funds to back millions of mortgages facing foreclosures. The final impact, including low end second ‘rescue’ plan was more than destroying. And let’s have a look on Wall Street. Stocks were declining and Dow Jones is now very close to Black Monday hitting something over 8,100 points. The major American index has plunged to settle on final 8,282.66 loosing more than 411.30 points.

Nevertheless Congress has scheduled detailed plan of hearings aiming to understand the role of hedge funds in the whole process and of course, how provided support was improving the situation within separate banks. Billionaires like George Soros will be examined as well as Bank of America, Wells&Fargo Co. and naturally every bank that has been rescued.
This may look like big mama carrying for her nasty baby. Are you ok? Are you doing fine with the money I gave you? Besides, would you be kind enough to tell me, what have you done with it?

Sure, this may not be for everyone. Instead of such hearings NY Senator Chuck Schumer claimed for more strictly repressions put on the companies rather than fiercely provided cash.
He said even with the changes made in this rescue plan he was still disappointed by the unwillingness to control the companies in certainly harder mood.
One might certainly say better to control than to cure. Even if it interferes, theoretical essence of financial freedom.


related story: http://news.yahoo.com/s/ap/20081113/ap_on_bi_ge/financial_meltdown;_ylt=AomoHumg_vJDTy.vIJcdKXKs0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova