US "'agrees Wall Street bail-out'"

the fall

A leading US senator says both parties in Congress have reached agreement on the outline of a $700bn (£380bn) bail-out plan to revive the finance sector.

Christopher Dodd, chairman of the Senate Banking Committee said they had reached "fundamental agreement" on the principles of a deal.

Republicans and Democrats have been worried about who will fund the plan.

US President George W Bush is meeting presidential candidates John McCain and Barack Obama to discuss the bail-out.

Mr Dodd said Congress could act in the next few days to pass a bill on the subject.

"We look forward to reviewing the proposal. Our focus remains the same - ensuring that the final package is effective," said Treasury spokeswoman Jennifer Zuccarelli.

After Mr Dodd's comments Tony Fratto, the White House deputy press secretary, said it was a "a good sign that progress is being made."

The plan, as it was first proposed last week, would broadly help finance firms offload bad debt, which has triggered a global credit crisis.

"We now expect that we will have a plan that can pass the House, pass the Senate and be signed by the president," Republican Senator Robert Bennett of Utah said after meetings with lawmakers on Thursday.
Details of the package were not immediately available but it is tipped to include restrictions on executives' pay as well as oversight requirements.

The benchmark Dow Jones index continued to rise after Senator Dodd's comments, adding 3%, to 11,128.7.

Concerns

The bail-out has been under scrutiny with politicians on both sides nervous about the deal being rushed through too quickly.

Of particular concern has been the issue of pay for the bosses of the firms in question, as well as concerns over the cost of the plan to the US taxpayer.

But both US Federal Reserve head Ben Bernanke and Mr Bush have warned that without a deal, it would cause a significant set-back to the economy as a whole.

Those in favour of the deal have argued that:

* The deal would boost global financial stability
* Increase investor confidence
* Prevent a global slowdown
* Encourage banks to lend to each other, and beat the credit crunch.

Those with reservations have said the bail-out would:

* Cost the taxpayer too much money
* Benefit bosses of firms who have taken huge risks
* Increase state debt
* Give too much power to the US Treasury.

One of the main uncertainties of the bail-out is what the true cost will be, and how the Treasury will price the bad debt that it is planning to acquire.

Turmoil

The package was proposed after a period in which markets saw almost unprecedented global turmoil and upheaval.

Key investment firm Lehman Brothers, the fourth largest investment bank in the US, filed for bankruptcy protection and the government had to intervene to rescue insurance giant AIG.

Meanwhile Bank of America stepped in to buy Merrill Lynch.

And investment banks Goldman Sachs and Morgan Stanley changed their status, enabling them to tap into commercial banking, effectively marking the end of an era on Wall Street.

The bail-out is being seen as a way to help boost the outlook for banks, and improve the availability of credit which has been harder to obtain for banks and businesses as well as individuals. - BBC

well well..i smell great depression..
so looks like they want the taxpayers are going to pay for this 700 billion..
but apparently only 28% supports bail out and tax payers are screaming "no murrrfurrrrrgggin way!"
even economists and congressmen are not backing it up..

So who wants the bailout?

The only people who want it are the big money boys, the ultra elite, including the Wall Street fat cats and Fed who got us into this mess, and their counterparts abroad who would also be bailed out
america vs financial elite



i told you ron paul is the truth.. but you had to go with mccain..

and these people have no eye deer what's happening..