Congress votes 263-171 to approve revised $700 billion bailout plan

To the relief of stock markets around the world, the controversial $700 billion bailout bill has been passed by the House of Representatives. The bill, which was rejected by the House when it was first presented on Monday [29 Sep 2008], was passed by the Senate on Wednesday. Monday's rejection of the bill in the House triggered a dramatic plunge on stock markets, costing investors $1 trillion in stock values. Several Democratic and Republican lawmakers who voted against the earlier version of the plan on Monday have now approved the measure. The final vote was 263 votes in favour, and 171 against.

The plan includes amendments designed to attract the support of the reluctant lawmakers. It limits compensation for the heads of failed financial institutions, and increases the size of bank accounts protected by government insurance against bank failure. There also are tax breaks for alternative energy companies. The 263-171 vote by the House sends the Senate-passed version to the White House for President Bush's signature. Among many features, the measure would allow the Treasury Department to buy up bad debt from various lending institutions. Announcement of the vote was greeted by applause.

- Okay, so Paulson's simple 3-page plan didn't work, and they had to add in a bunch of "interesting" features to drum up support. And of course, the 777-point drop in the Dow really must have helped to change a lot of people's minds. Some say it's blackmail. I think it's a great application of psychology - whether intentional or not, we may never know.

This may sound odd, but somehow at this point I am reminded of a particular line from Star Wars : "This is how liberty dies - to thunderous applause". The world has changed - and I'm not sure it's for the better.

Comments:

It is only my opinion that these CEO’s that ran our credit institution should never get these ridiculous severance packages. The Board of Directors of these credit institution should all be dismissed for allowing this to go on. It needs to stop now. Mr. Fishman who joined Washington Mutual Sept 8, left Sept 25,2008 will get this wonderful severance package. I wonder if an average teller left Washington Mutual what would the severance package be if they left in that period.
This is one of the reasons our Economy is the way it is, because this has been allowed to go on for years. If the people have to bail these companies out, then these CEO’S should get nothing.
The little person on the street does not get a severance package, yet these CEO’s get all their benefits. No wonder the average worker cares less how the company does that they are working for, when they treat the CEO’s like they do and the little person is treated like a number your social Security number.
Things need to change and it needs to change from the “Top”

Posted by Michael on October 04, 2008 at 06:49 AM SGT #