McCain calls revamped bailout bill an improvement

McCain warns that a full-fledged financial disaster could occur if new bailout bill fails
By MIKE GLOVER Associated Press Writer | AP
Oct 1, 2008

Republican presidential candidate John McCain said Wednesday the resurrected financial bailout bill isn't perfect but warned that the nation's financial crisis will become a full-fledged disaster if the plan fails.

In an economic speech Wednesday at the Truman Library and Museum, McCain said the original proposal that failed in the House was flawed because it did not contain taxpayer protections, limitations on executive compensation and sufficient protections for people's bank accounts.

"I am pleased that these are being added to improve the original bill," he said.

If the revised version, up for a vote in the Senate later Wednesday, were to fail, students won't be able to get college loans and families will have trouble buying new homes, he said. Car sales will take a hit and businesses will have difficulty paying employees and securing credit for operations, he said.

"If we fail to act, the gears of our economy will grind to a halt," McCain said.

McCain planned to return to Washington to vote on the bill, which adds substantial tax cuts meant to appeal to Republicans when it reaches the House. The modest changes include an increase on Federal Deposit Insurance Corp. caps for bank accounts from a limit of $100,000 to $250,000.

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Burning Down The House: What Caused Our Economic Crisis?

Since you and your kids and their kids and their kids are going to be paying off the biggest bailout in history, you owe to yourself to watch this video:

Republicans point finger of blame at House Speaker Nancy Pelosi for 'partisan' speech'

30 September 2008
By BRIAN FERGUSON

EVEN before the doomed vote on the $700 billion bail-out plan began in the House of Representatives yesterday, stocks were plummeting as tension mounted.

In Congress, members shouted news of the plunging Dow Jones average as others crowded on the floor during the 40-minute call of the roll, as leaders on both sides struggled to persuade rank-and-file members to support the deal. Within minutes of the ADVERTISEMENTresult, the recriminations had begun.

House Republicans blamed a "partisan" speech by the Speaker, Nancy Pelosi, a Democrat, during the debate. She had blamed George Bush's "reckless economic policies", "fiscal irresponsibility" and an "anything goes economic policy" for the crisis.

After the vote, John Boehner, the Republican minority leader, said: "I do believe we could have got there today, had it not been for this partisan speech the Speaker gave. The Speaker had to give a partisan voice that poisoned our conference."

Later, the Republican presidential nominee, John McCain, said: "I was hopeful the improved rescue plan would have had the votes needed to pass, because addressing the credit crisis is of vital importance to families, small businesses, every working American.

"Now it's time for all members of Congress to go back to the drawing board. I call on Congress to get back, obviously, immediately to address this crisis.

"Our leaders are expected to leave partisanship at the door and come to the table to solve our problems."

Mr McCain also criticised his Democratic presidential rival, Barack Obama, and "his allies in Congress" for their "unnecessary partisanship".

However, Mr Obama himself took a bullish stance when he urged Democrats and Republicans to "step up to the plate, get (a deal] done".

He added: "Understand that, even as you get it done to stabilise the markets, we have more work to do to make sure that main street is getting the same kind of help Wall Street's getting."

And Henry Paulson, the US Treasury secretary, added: "We need to put something back together that works. We need it as soon as possible."

http://news.scotsman.com/latestnews/Republicans-point-finger-of-blame.4540098.jp

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White House, Congress push for bailout deal -- Courant.com

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White House, Congress push for bailout deal -- Courant.com: "From the Los Angeles Times
FINANCE
White House, Congress push for bailout deal
By RICHARD SIMON Los Angeles Times
September 28, 2008

WASHINGTON — - Working past midnight, Congressional negotiators early today reported a tentative deal on a Wall Street bailout, in hopes of reaching an agreement before financial markets open Monday.

House Speaker Nancy Pelosi announced the accord just after midnight but released no details, saying it still had to be put on paper. Treasury Secretary Henry Paulson talked of finalizing the deal — which could cost as much as $700 billion — but added: 'I think we're there.'

The House could vote on it today and the Senate on Monday.

As bipartisan talks resumed at the Capitol — and under a greater sense of urgency — President Bush had stepped up his efforts to win the support of skeptics within his own party for the plan.

Paulson joined the talks between members of both parties from both chambers; House Minority Whip Roy Blunt of Missouri, whose Republican rank and file have been the plan's loudest critics, reported progress.

Sen. Judd Gregg of New Hampshire, the Senate Republicans' lead negotiator, said that the parties had moved 'down the road a long way toward reaching agreement.'

Some House Republicans had argued against setting an arbitrary deadline for action.

'By irresponsibly raising investors' expectations of an agreement, the failure of Congress to reach a deal by such a deadline could spark the very economic meltdown we are trying to stop,' said Rep. Thaddeus McCotter, R-Mich."

http://www.courant.com/news/nationworld/hc-finance0928.artsep28,0,3083943.story