I have been reading quite-a-bit about the huge government bailout, and I am finding many of the articles are long, drawn-out and hard to understand. Many of you may be struggling to understand exactly what all is involved in the huge bailout and how it will affect you.
The note below is a fairly concise read on where we are and what we can expect over the next few days. As of this writing, the Senate had approved the revised plan and a vote is expected in the House of Representatives in the next few days.
Growing Optimism on Revived Rescue Plan
Congressional leaders from both parties say they’re hopeful that a $700 billion financial industry bailout that derailed in the House is back on track for quick passage, thanks partly to a provision increasing insurance for people’s deposits, according to the Associated Press.
President Bush planned to call lawmakers asking for their support ahead of a crucial Senate vote Wednesday night, said the AP.
“I think the Senate thinks it has the votes and I think it probably will pass,” said House Majority Leader Steny Hoyer, D-Md. House Republican Whip Roy Blunt of Missouri agreed that prospects for passage have improved, and he said he was particularly heartened by indications the legislation has become more appealing to constituents back home.
Vote Set for Wednesday Night
The plan for Wednesday night’s vote was set after leaders there agreed to add tax breaks for businesses and the middle class and increase deposit insurance in an attempt to revive the legislation rejected by the House.
The House may reconsider the plan on Friday.
“No one is glad we have reached this critical point. . .Now is our time to work not as Democrats, not as Republicans, but as guardians of the public trust,” said Sen. Harry Reid, D-Nev. He said he was hopeful the measure could clear Congress within days “so that by this weekend rolling around, we will have done what we need to do for the American people.”
Republican Sen. Mitch McConnell of Kentucky, the minority leader, said: “We believe that we have crafted a way to go forward and to get us back on track.”
White House Warns of the Risk of Failure
The White House tried to build support by warning of the consequences of failure. “This morning we’re seeing increased evidence of the credit squeeze on small businesses and municipalities all across the country, so it’s critically important that we approve legislation this week and limit further damage to our economy,” White House spokesman Tony Fratto said.
Democratic presidential nominee Barack Obama and his GOP rival, John McCain, planned to fly to Washington for the Senate vote, as did Democratic vice presidential nominee Joe Biden.
Reid and McConnell appeared likely to win a big vote in the Senate that would put pressure on the House to go along and send the measure to the White House.
Scrambling to revive a package that met with bitter derision among constituents who viewed it as a giveaway to Wall Street, the Senate added a number of sweeteners designed to please rural lawmakers, including disaster aid for hurricane-battered states and money for rural schools.
The package was hitching a ride on a popular measure to require health plans for 51 or more employees to give equal treatment to mental health or addiction if they cover such illnesses.
Source: Associated Press, Andrew Taylor (10/1/08)
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