The Senate approved the revised $700 billion rescue plan designed to save the weakened US financial system. The 74 to 25 “in favour” vote means the bill now can move forward to the House of Representatives, who still have yet to decide whether or not to give the green light.
The original bill, which favoured the struggling banker over the taxpayer, was revised offering a sweeter deal for families and businesses to win over the skeptics.
Some of the changes included are:
Raises government’s guarantee on savings from $100,000 to $250,000
Tax breaks to help small businesses and promote renewable energy
Expansion of child tax credit and help for victims of recent hurricanes
The House of Representatives is expected to vote yea or nay today. President Bush said, “The American people expect, and our economy demands, that the House pass this good bill this week and send it to my desk”. However, do Americans really want to be burdened with a bailout bill and its massive tax implications?
Despite early optimism due to passing the first hurdle with the Senate, the House have the last vote and determine whether or not this massive rescue plan goes forth.
Barack Obama and John McCain are both in favour of the bill.
What do you think? Should taxpayers have to bail out the US economy due to bad banking practises like risky lending during the peak of the property bubble? What would happen if the government did not step in? Would the economy melt down?
What are your thoughts?
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