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US House of Representatives Accepts new Bail-Out Plan

2008 October 3

The United States lower house, the House of Representatives, has this time accepted the amended bail-out plan for the US financial system.

  • Democrats voted 172 Yea, 63 Nay,
  • Republicans voted 91 Yea, 108 Nay,
  • Overall: 263 Yay, 171 Nay.

Where does this now leave the US and world economy?

The Economist says that the world economy is now on the edge of “a nasty recession”. It is calling for world governments to work together to solve the crisis. This view is echoed by the Financial Times. But while the Economist suggests Europe will fare worse than the US, Yahoo reports that the International Monetary Fund (IMF) predicts a deep recession in the US and less so in Europe. Forbes asks “is this the mother of all bank runs?”

The last time the world’s banking system collapsed, was during the Great Depression of the late 20’s and 30’s. Though the Depression’s causes was more general, debt is seen as one of its causes.

Will the revised plan save the world’s financial system this time, and the jobs, savings and pension plans that rely on it? Does it need saving?

Sources

BBC News Channel

http://uk.news.yahoo.com/afp/20081002/tbs-deep-recession-likely-in-us-less-so-5268574.html
http://www.economist.com/opinion/displaystory.cfm?story_id=12341996&fsrc=rss
http://www.forbes.com/home_europe/2008/10/01/goldman-morgan-run-oped-cx_nr_1002roubini.html
http://www.ft.com/cms/s/72ee6284-9075-11dd-8abb-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F72ee6284-9075-11dd-8abb-0000779fd18c.html%3Fnclick_check%3D1&_i_referer=&nclick_check=1

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2 comments

  1. This plan is a disaster for all of us.

    Want to see a real alternative to this bailout plan garbage – go to http://www.useconomycrisis.com/


  2. Thanks, Billm.

    What does anyone else think?



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