Category Archives: Economics

Bailout Bill Passes in Senate

The bailout bill passes in the Senate Wednesday night after a stunning vote of 74-25. The revised bill contained tax breaks among other things to help soften the Republicans into passing it. The bill is expected to be voted on by the House of Representatives where it failed the first time around on Friday. The Senate encourages the members of the House to maintain bipartisan views so that the bill can be passed.

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xPirate says: THANK GOD!!! Let’s just hope there’s not another political deadlock in the House. I really think that this bill needs to pass. Of course, I’m no economist, so I don’t even know what’s really going on, and that’s why I don’t have much to say about it.

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Senate to Vote on Revised Bailout Bill

After the proposed 700 billion dollar bailout bill failed in the House of Representatives on Monday, major political leaders urged the congress to take immediate action on revising the plan in order to make it pass. Today, a revised bill will be introduced into the Senate, in hopes to save the current failing economy.

Mitch McConnell, a Kentucky Senator, says it would “shield Americans from a shockwave of problems they didn’t create.” Senator Harry Reid hopes that if the Senate shows a strong example of bipartisanship, the House of Representatives would be encouraged to do the same. Presidential candidates Barack Obama and John McCain will be returning to Washington D.C. for the vote that will take place later today.

Obama stated while speaking in Reno, Nevada, that without this bill “millions of jobs could be lost, and a long painful recession could follow. There will be a time to punish those who set this fire, but now is the moment for us to come together to put the fire out.”

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xPirate’s thoughts on the matter: I think in previous posts I’ve already said that I thought it was necessary for this bill to pass. I guess we’ll find out later today. Stay tuned for updates.

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World Economy Continues to Spiral Downwards

Today the House of Representatives convened to vote on the $700 billion dollar bailout plan that would buy bad mortgage debt from large banks and firms and give them an opportunity to get back on their feet. The plan failed with a vote of 228 to 205. Both President Bush and UK Prime Minister Gordon Brown expressed their disappointment in bill’s failure.

Traders on the floor in Wall Street were not pleased. Shares dropped a record amount today, falling 770 points. Wachovia, the fourth largest bank in the US, sold to competitor Citigroup.

The problem is no longer just here in the US as major foreign markets fell drastically today. Without the bailout plan, many more banks and investment firms will bust. Nancy Pelosi stated, “The legislation has failed, the crisis has not gone away.” Republican house leader claimed a speech given by Pelosi, “poisoned our conference, caused a number of members that we thought we could get to go south.”

Presidential candidate John McCain claims that the Democrat’s partisan speech as being unhelpful. He stated, “Now is not the time to fix the blame, it’s time to fix the problem.” He encouraged congressmen to try and work out a new deal immediately.

Opponent Barack Obama expects a bailout bill of some form to pass. He is upset that the mess on Wall Street has transferred to the average citizen. He says, “If I am president I will review the entire plan the day I take office to make sure that it is working to save our economy and that you get your money back.”

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xPirate’s thoughts on the situation: I’m very worried now that the bill has failed. With the markets falling as much as they have recently, we are heading very quickly toward another Great Depression. I personally expected the bill to pass, but once again, Republicans bring a halt to our glimmer of hope. I’m pissed that once again partisanship and stupid bickering in Washington has led to nothing being done! Do these politicians just not realize that we are in a state of crisis? We can’t wait for the parties to agree on everything.

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Arguments in White House Stall Bailout Plan

Wednesday afternoon President George W. Bush called for a meeting in the White House between Republican and Democratic leaders to discuss a bailout plan in an attempt to save the currently failing economy. The proposal included a plan to save more banks from collapsing by having the government buy bad debt. This proposal would cost the government $700 billion dollars.

It was announced Thursday by Senator Chris Dodd, the chairman of the Senate Banking Committee, that Republicans and Democrats “had reached a fundamental agreement.” However, later, Republican Richard Shelby stated, “I don’t believe we have an agreement.” A group of Republicans participating in the discussion disagree with the plan which led to what John McCain called “a continuous shouting match.” The opposition worries about how the government is going to afford the cost of the plan and don’t believe the government should get involved in the financial sector. Instead, they proposed a government backed insurance policy for the bad debt obtained by large US Banks. The discussion will be continued Friday (today).

The presidential debate scheduled for tonight between candidates John McCain and Barack Obama is still up in the air. McCain stated on Wednesday that if an agreement could not be reached by Friday, he would not attend the debate. A recent poll on MyFoxColorado.com showed that a majority of the people would like to see the debate happen.

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RECENT UPDATE: BUSH PROMISES BAILOUT PLAN WILL PASS

Bush Addresses the Nation early Friday Morning – It won’t let me post the video because it’s not on YouTube or Google yet.

xPirate’s view on this situation: I’m no economist, but from what I know the bailout plan is the best chance we have a saving our crashing economy. The opposition from the Republicans is strange, considering George Bush supports the plan. One thing is certain, something needs to be done. We aren’t at a time when we can sit around waiting for the endless bickering in Washington to end. I was happy when I thought Republicans and Democrats have finally come together to solve a problem for once, but I guess that I was wrong.

I, personally, would love to see the presidential debate take place. I don’t think there’s much John McCain is going to be able to do by himself in Washington other than continue to argue and beat a dead horse. It has been proposed that the debate focus on the current economic crisis. While I think that it is important to cover, there are still other issues that the candidates need to cover for the public’s sake. I guess we’ll find out what happens.

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McCain, Obama, and Bush to Deal with Economic Crisis

It’s no news that the current US economy is facing a huge crisis. This afternoon John McCain announced that he was suspending his campaign to return to Washington in hopes to fix the troubled economy. President Bush has invited both candidates as well as various Democratic and Republican leaders from congress to the White House to discuss a deal on a financial bailout. Bailout is an economic term used to describe the situation where a bankrupt corporation or bank is given a fresh injection of liquidity in order to meet short term needs. (Wikipedia)

Both political parties, in the midst of all their petty fighting, agree that something must be done about the crisis that this country’s economy now faces. Bush made a short 12 minute address to the nation earlier this evening. Both Obama and McCain have issued a joint statement saying,

“Now is a time to come together Democrats and Republicans in a spirit of cooperation for the sake of the American people.The plan that has been submitted to Congress by the Bush administration is flawed, but the effort to protect the American economy must not fail. This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe.”

Candidate John McCain recently met with a group of economic advisers and have come up with a $700 billion dollar proposal. It was after this meeting that McCain called for Bush, not famous for dealing with issues on a personal level, to bring the candidates to the White House. McCain has also suggested that the presidential debate scheduled for Friday be postponed in the midst of this economic crisis. Obama has no plans to cancel the debate or suspend his campaign.

Source 1 – MyFox Colorado
Source 2 – MTV News

xPirate’s view on the situation: I’m surprised. Given how divided our country has become politically, it really makes me feel good that these leaders are willing to put partisanship behind them to work out this crisis. Of course, something should have been done sooner, but at least something is happening. I’ve been living in fear of another Great Depression these past few weeks, so I’m hoping that something is able to be done.

John McCain made a smart move by calling for this meeting. I’m no economist, so my opinion on whether McCain’s proposal will work or not really isn’t valid. I’m just happy to see something being done about our economic plunge to death! He probably just won some votes for this.

I do believe that the presidential debate scheduled for Friday is important and would like to see it take place. However, if there’s still work to be done in Washington, that should be the first priority. While I support Obama, he constantly is talking about the “change we need,” so now is his time to prove to our nation that he really can bring about this change that we need.

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