Bush Pledges to Quickly Sign Bailout Bill
Associated Press
Transcript
Short time ago, the House of Representatives passed a bill that is essential to helping America's economy weather the financial crisis. The Senate passed the same legislation on Wednesday night. When Congress sends me the final bill, I'm going to sign it into law. There were moments this week when some thought that the federal government could not rise to the challenge. But thanks to the hard work of members of both parties in both houses and the spirit of cooperation between Capitol Hill and my administration, we completed this bill in a timely manner. I'm especially grateful for the contributions of Speaker Nancy Pelosi, Minority Leader John Boehner, Majority Leader Stanny Hoyer, Minority Whip Roy Blunt, Chairman Barney Frank, Ranking Member SP Spencer Bakus. By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from be from becoming a crisis in communities across our country. We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy. A major problem in our financial system is that banks have restricted the flow of credit to businesses and consumers. Many of the assets these banks are holding have lost value. The legislation Congress passed today addresses this problem headon by providing a variety of new tools to the government, such as allowing us to purchase some of the troubled assets and creating a new government insurance program that will guarantee the value of others. The bill also ensures that these new programs are carried out in a way that protects taxpayers, prevents failed executives from receiving windfalls from taxpayers dollars. It establishes a bipartisan board to oversee the plan's implementation. Taken together, these steps represent decisive action to ease the credit crunch that is now threatening our
Congress OKs Financial Rescue, Bush Signs It
Associated Press
Transcript
on the second try the house passes a sprawling 700 billion doll government Rescue of the financial industry sending it to the president who will sign it into law by coming together on this legislation we have acted boldly to help prevent the crisis on Wall Street from be from becoming a crisis in communities across our country the final vote of 263 to 171 snagged 58 more votes than on Monday when an earlier proposal failed makers were under immense pressure to do something with almost daily warnings that the country faced the greatest economic crisis since the Great Depression if Congress did nothing Speaker of the House Nancy Pelosi hailed the vote and said Wall Street must change its ways High Flyers on Wall Street will no longer be able to jeopardize that personal Economic Security of Americans began because of the bright light of scrutiny accountability at the core of the plan purchasing bad Mor related Securities weighing down the balance sheets of Institutions all but drying up the credit Market threatening the operations of some companies Lee Powell the Associated Press
House OKs Rescue, Bush Quickly Signs
Associated Press
Transcript
the motion is adopted given a second chance the house did and about face easily passing the $700 billion bailout of the financial industry dozens of lawmakers from both parties changed their votes to now support the bill it may be politically damaging and the sky may fall tomorrow but it'll fall upon my head our economy is not stable Working Families are suffering unemployment is over 10% in my own District today I'm going to cast a red white and blue collar vote with my hand over my heart for this country because things are really bad and we don't have any choice some say they did the about face because of the stock market slide that resulted from Monday's defeat others pointed to the tax breaks and the increasing Deposit Insurance that were added by the Senate but that just made it worse for some lawmakers it is simply wrong it's irresponsible at the White House President Bush hailed the Bill's passage and quickly signed it we have acted boldly to help prevent the crisis on Wall Street from be from becoming a crisis in communities across our country the vote came as the government reported the September unemployment rate was 6.1% 159,000 jobs were lost last month bringing the total for the year to more than 3/4 of a million it was an up and down day on Wall Street the DOW Industrials were up more than 200 points during the session but closed with a loss of more than 150 points the bailout Bill may have passed and already been signed into law but Democrats say it's not the end they're planning a series of hearings into the causes and impacts of the financial crisis on Wall Street the first hearing is set for Monday and they plan to hear from former fed chairman Allen Greenspan later this month Jerry bodlander the Associated Press Capitol Hill
House Scrambles to Revive Rescue Vote
Associated Press
Transcript
it's the Day of Reckoning here on Capitol Hill for the economic rescue package after Monday's stunning defeat President Bush and Congressional leaders have been working hard to round up the votes they need to pass the bill this second time around and they are winning some converts some of the lawmakers who have decided to change their votes from no to yes are pointing to what the Senate added to the package specifically more than a hundred billion dollar worth of tax breaks and a big increase in the Federal Deposit Insurance program others point to the dire Straits that the economy is in and specifically note the big slide on Wall Street after Monday's defeat of the bill others say they're getting calls from constituents specifically businessmen who say the credit frees means they can't get the credit they need to run their businesses but the addition of the tax breaks could cost some votes specifically the votes of conservative Democrats who say the tax breaks have to be paid for after Monday's defeat House Majority Leader stenny Hoyer isn't promising that this bill is going to pass he is confident and believes it will but says he's not promising anything Jerry bodlander the Associated Press Capitol Hill
Pelosi: Scrutiny, Accountability Next
Associated Press
Transcript
it will be about accountability it'll be about regulation regulatory reform which is essential and will be be about building an economy with a focus on the middle class where many more Americans will participate in the economic security of Americans of of our country and that we're High Flyers on Wall Street will no longer be able to jeopardize that personal economic security of Americans again because of the bright light of scrutiny accountability and the attention given uh under regulatory reform we are all believers in the free market it's part of our democracy we know that the free markets create jobs create Capital create wealth that's very important but recently left unregulated and undisciplined and unsupervised they created chaos that was then this is now
Stocks End Lower After House OKs Plan
Associated Press
Transcript
we rescued it comes the market flighters that was the reaction on the floor of the New York Stock Exchange as the house passed the 700 billion dollar bailout bill the initial response on the big board was muted the traders began selling off stocks as the new settled in pushing the dow down more than 200 points in the first hour alone trader Allen Valdez says the bill's passage was not unexpected a far cry from the chaos that gripped the markets just four days earlier you know in the long run its the right bill it really is it should put a footing on the housing debacle we should be able to move forward but most importantly it should free up that credit the credit markets that have literally been frozen I mean banks were not letting two banks because they were afraid of the counterparty they're gonna have nothing to fear from the US government so this should definitely see Don was instantly the Dow Jones Industrial Average ended the day down 157 points at 10,000 325 the broader indexes also ended lower the standard & poor's 500 index was off 15 points at 1099 and the nasdaq finished down 29 points at 1977 David Lee's an economist at Standard & Poor's says the bailout package is just one of the issues America is facing in the years ahead we've got a real problem in that financial markets have clogged up nobody wants to make loan to anybody what this bill should do is free that up get small business lending going again get consumer lending going again it doesn't solve the underlying problems in the housing market however and that's probably going to require some more legislation at the beginning of the next president's term the big question now will this bailout plan work well it's stabilized the stock markets and will it unfreeze the credit market Teddy a free The Associated Press Wall Street
Stocks Off Highs After House Passes Bailout
Associated Press
Transcript
On this vote, the yays are 263. The naysay are Congress has passed legislation authorizing 700 billion dollars in government money to shore up the nation's stressed financial industry. Traders at the New York Stock Exchange watched the vote from the floor, but had little immediate reaction as the vote passed. The Dow dropped more than 200 points shortly after the vote and fluctuated rapidly during the first few minutes. The 263 to 171 vote by the House sends the Senate passed version to the White House for President Bush's signature. Meanwhile, investors were still digesting news that Wells Fargo has agreed to buy Wakovia in a $15.1 billion deal that will not require help from the FDIC days after Croup reached its own deal to acquire Wakovia. Investors are also contending with the September unemployment report that showed payroll shrank by 159,000, far higher than the 100,000 economists predicted. Ed Donahghue, the Associated Press.
Stocks Point Higher Ahead of House Vote
Associated Press
Transcript
rarely has a market been so eager to embrace the weekend in two of the week's first four trading days Wall Street Traders here at the New York Stock Exchange have seen the Market's best known indicator dive some 10% those losses sandwiched around a gain of about half that fear and greed are what rule Wall Street with fear gaining the upper hand the last few weeks what if the financial system bailout isn't enough to rescue the system what if the unemployment numbers are worse than expected and for all of the action in the stock market the real focus is on the credit markets credits are like the oil that run the world economy they run on confidence and right now Traders are showing very little confidence driving treasury bill yields down to Historic lows an indicator of how little investors are willing to take to preserve their Cash Warren levenson the Associated Press at the New York Stock Exchange
Wave of House Converts Jump Aboard Bailout Bill
Associated Press
Transcript
the bill having attained 60 votes in the affirmative the bill as amended is passed on the heels of the Senate's overwhelming approval of the rescue package by a 3:1 margin the $700 billion bailout is now winning converts in the house after its stunning defeat their Monday Tennessee Congressman Zack wamp will switch his vote from no to yes I would say this is where we have to actually like put our hand on our heart and do what we really think is best even though it's painful in addition to the money to buy up soal toxic mortgages Senators added $100 billion in tax breaks for business and the middle class and increased the federal Insurance on Bank deposits from $100,000 to $250,000 Arizona congressman John shadik will also change his vote to yes this is the best we're going to get I think it's important for the economy to act the shift comes as more people than expected filed firsttime claims for jobless benefits and Factory orders plummeted 4% in August from July much more than expected meeting with manufacturers and business owners President Bush continued to stress the package is essential to the Financial Security of all Americans they're worried about their savings they're worried about their jobs they're worried about their houses they're worried about their small businesses but some opponents are digging in their heels there is a better way to address the credit crunch facing our banks than taxpayers printing money for wall Street's bad actions some democratic leaders say that including the tax cuts to win over the dozen or so Republicans that are needed to pass the rescue package in the house could be counterproductive that's because conservative house Democrats strenuously oppose such breaks unless they are somehow offset and how they vote could determine the fate of the rescue package Jerry bodlander at the Associated Press Capitol Hill
VP Debate - Bankruptcy: Do you support legislation to hel...
C-SPAN
Transcript
make it more difficult for debt strapped mortgage holders to declare bankruptcy to get out from under that debt this is something that John McCain supported would you have yes I would have but here again there have there have been so many changes in the conditions of our economy in just even these past weeks as there has been more and more Revelation made aware now to Americans about the corruption and the greed on Wall Street we need to look back even two years ago and we need to be appreciative of John McCain's call for reform with Fanny May with Freddy Mack with the mortgage lenders too who are starting to really kind of rear that head of abuse and the colleagues in the Senate weren't going to go there with them so we have John McCain to thank for at least warning people and we also have John McCain to thank for bringing in a bipartisan effort people to the table so that we can start putting politics aside even putting a campaign aside and just do what's right to fix this economic problem that we are in it is a crisis it's a toxic mess really on Main Street that's affecting Wall Street and now we have to be ever Vigilant and Al also making sure that credit markets don't seize up that's where the main streeters like me that's where we would really feel the effects Senator Biden you voted uh for this bankruptcy Bill Senator Obama voted against it uh some people have said that mortgage holders really paid the price well mortgage holders didn't pay the price only 10% of the people who are have been affected by this whole switch from chapter 7 to chapter 13 it gets complicated but the point of this Barack Obama saw the glasses half empty I saw it as half full we disagreed on that and 85 Senators voted one way and 15 voted the other way but here's the deal Barack Obama pointed out two years ago that there was a subprime mortgage crisis and wrote to the Secretary of Treasury and he said you better get on the stick here you better look at it John McCain said as early as last December quote I'm I'm paraphrasing I'm surprised about this subprime mortgage crisis number one number two with regard to bankruptcy now Gwen what we should be doing now and Barack and Obama and I support it we should be allowing bankruptcy courts to be able to readjust not just the interest rate you paying on your mortgage to be able to stay in your home but in be able to adjust the principle that you owe the principle that you owe that would keep people in their homes actually help banks by keeping it from going under but but I John McCain as I understand it I'm not sure of this but I believe John McCain and the governor don't support that there are ways to help people now and the ways that we are offering are not being supported by uh uh by the Bush Administration nor do I Believe by John McCain and Governor Palin Governor Palin is that so uh that is not so but because that's just a quick answer I want to talk about again uh my record on energy versus your tickets energy uh ticket also I I think that this is important to come back to with that energy policy plan again that was voted for in ' 05 when we talk about energy we have to consider the need to do all that we can to allow this nation to become energy independent it's a nonsensical position that we are in when we have domestic supplies of energy all over this great land and East Co politicians who don't allow energy producing states like Alaska to produce these to tap into them and instead relying on foreign countries to produce for us we're circulating about $700 billion dollar a year into foreign countries some who do not like America they certainly don't have our best interests at heart instead of those dollars circulating here creating tens of thousands of jobs and allowing domestic supplies of energy to be tapped into and to start flowing into these very very hungry markets energy Independence is the key to this nation's future to our economic future and to our national secur security so when we talk about energy plant it's not just about uh who got a tax break and who didn't and we're not giving Oil Company tax breaks but it's about a heck of a lot more than that energy Independence is the key to America's future Governor I'm happy to talk to you in this next section about energy issues let's talk about
VP Debate - Financial Rescue Vote: Were congressional vot...
C-SPAN
Transcript
as America watches these things happen on Capitol Hill Senator Biden was this the worst of Washington or the best of Washington that we saw play out let me Begin by thanking you Gwen for hosting this and Governor it's a pleasure to meet you and it's a pleasure to be with you um I think it's neither the best or worst of Washington but it's evidence of the fact that the economic policies of the last eight years have been the worst economic policies we've ever had as a consequence you're seeing what's happened on Wall Street if you need any more proof positive of how bad had the uh economic theories have been this excessive deregulation the failure to oversee what was going on letting Wall Street run wild I don't think you needed any more evidence than what you've seen now so the Congress have been put at Democrats and Republicans have been put in a very difficult spot but uh Barack Obama um uh laid out four basic criteria for any kind of uh rescue plan here he first of all said there has to be oversight we're not going to write any check to anybody unless there's oversight for the other SE treasury he secondly said you have to focus on homeowners and folks on Main Street thirdly he said that if you have to treat the taxpayers like investors in this case and lastly what you have to do is make sure the CEOs don't benefit from this because this could end up the long run people making money off of this rescue plan and uh so a consequence of that it brings us back to maybe the fundamental disagreement between Governor Palin and me and Senator McCain and Barack Obama and that is that the uh we're going to fundamentally change the focus of the economic policy we're going to focus on the middle class because it's when the middle class is growing the economy grows and everybody does well not just focus on the wealthy and Corporate America thank you Senator Governor Palin thank you Granton I think the commission also I appreciate this privilege of being able to be here and speak with Americans you know I think a good barometer here as we try to figure out has this been a good time or a bad time in America's economy is go to a kid soccer game on Saturday and turn to any parent there on the sideline and ask them how are you feeling about the economy and I'll bet you you're going to hear some fear in that parent voice fear regarding the few Investments that some of us have in the stock market did we just take a major hit with those Investments fear about how are we going to afford to send our kids to college a fear as small business owners perhaps how we're going to borrow any money to increase inventory or hire more people the barometer there I think is going to be resounding that our economy is hurting and the federal government has not provided the sound oversight that we need and that we deserve and we need reform to that end now John McCain thankfully has been one representing reform two years ago remember it was John McCain who pushed so hard with the Fanny May and Freddy Mack reform measures he sounded that warning Bell people in the Senate with him his colleagues didn't want to listen to him and wouldn't go towards that reform that was needed then in I think that the alarm has been heard though and there will be that greater oversight again thanks to John McCain's bipartisan efforts that he was so instrumental in bringing folks together over this past week uh even suspending his own campaign to make sure he was putting obsessive politics aside and putting the country first you both would like to be vice president Senator Biden how as vice president would you work to shrink this gap of polarization which has sprung up in Washington which you both have spoken about here tonight well that's what I've done my whole career Gwen on very very controversial issues from dealing with violence against women to putting 100,000 police officers in the street to trying to get something done about the genocide and was going on in Bosnia and uh uh I uh I have been able to reach across the aisle I think it's fair to say that I have as almost as many friends the Republican side of the aisle as I do the Democratic side of the aisle but I am I able to respond to are we able to stay on the uh on if you like yeah well you know uh until two weeks ago it was two Mondays ago John McCain said at 9:00 in the morning that the fundamentals of the economy were strong two weeks before that he said uh George we've made great economic progress under George Bush's policies 9:00 the economy was strong 11:00 that same day two mons ago John McCain said that we have an economic crisis that doesn't make John McCain a bad guy but it does point out he's out of touch those folks on the sidelines knew that two months ago Governor Palin you may respond John McCain and referring to the fundamental of our economy being strong he was talking to and he was talking about the American Workforce and the American Workforce is the greatest in this world with the Ingenuity and the work ethic that is just um entrenched in our Workforce that's a positive that's encouragement and that's what John McCain meant now what I've done as a governor and as a mayor is truly had that track record of Reform and I've joined this team that is a team of Mavericks with John McCain also with his track record of Reform where we're known for putting partisan politics aside to just get the job done now Barack Obama of course he's pretty much only voted along his party lines in fact 96% of his votes have been solely along Party Line not having that proof for the American people to know that his commitment too is you know put the partisanship put the special interest aside and get down to getting business done for the people of America we're tired of the old Politics as Usual and that's why with all due respect I do respect your years in the US Senate but I think Americans are craving something new and different and that new energy and that new commitment that's going to come with reform I think that's why we need to send the Maverick from the Senate and put him in the white house and I'm happy to join him there Governor Senator neither of you really add that last question about what you would do as vice president I'm going to come back
VP Debate - Keeping Promises: Given recent financial trou...
C-SPAN
Transcript
that you have promised as a candidate that you would be that you wouldn't take off the table because of this financial crisis we're in there is not and how long have i been at this like five weeks so there hasn't been a whole lot that i promised except to do what is right for the american people put government back on the side of the american people stop the greed and corruption on wall street and the rescue plan has got to include that massive oversight that americans are expecting and deserving and i don't believe that john mccain has made any promise that he would not be able to keep either senator again let me let's talk about the tax breaks barack obama obama voted for an energy bill because for the first time it had real um uh support for alternative energy when there were separate votes on eliminating the tax breaks for the oil companies barack obama voted to eliminate them john did not let me just ask rhetorical question if john really wanted to eliminate them why is he adding to his budget an additional four billion dollars in tax cut for exxon mobils of the world that in fact already have made 600 billion dollars since 2001. and look i agree with the governor she imposed a windfall profits tax up there in alaska that's what barack obama and i want to do we want to be able to do for all of you americans give you back a thousand bucks like she's been able to give back money to her folks back there but john mccain will not support a windfall profits tax they've made 600 billion dollars since 2001 and john mccain wants to give them all by itself separate no additional bill all by itself another four billion dollar tax cut if that is not proof of what i say i'm not sure what can be so i hope the governor is able to convince john mccain to support our windfall profits tax which she supported in alaska and i give her credit for it next question governor palin still on the economy last year congress passed the bill that would
VP Debate - Subprime Mortgage Crisis: Who was at fault in...
C-SPAN
Transcript
back to that throughout the evening to try to see if we can look for it as well now let's talk about this the next question is to talk about the subprime lending Meltdown who do you think was at fault uh I start with you Governor pal and was it the greedy lenders was it the risky home buyers who shouldn't have been buying a home in the first place and what should you be doing about it uh darn right it was the Predator lenders who tried to talk Americans into thinking that um it was smart to buy a $300,000 house if we could only for to $100,000 house there was deception there and there was greed and there is corruption on Wall Street and we need to stop that again John McCain and I that commitment that we have made and we're going to follow through on that getting rid of that corruption one thing that Americans do at this time also though is let's commit ourselves just everyday American people Joe sixpack hockey moms Across the Nation I think we need to band together and Say Never Again never will we be exploited and taken advantage of Again by those who are managing our money and loaning us these dollars we need to make sure that we demand from the federal government strict oversight of those entities in charge of our investments and our savings and we need also to not get ourselves in debt let's do what our parents told us before we probably even got that first credit card don't live outside of our means we need to make sure that as individuals we're taking personal responsibility through all this it's not the American people's fault that the economy is hurting like it is but we have an opportunity to learn a heck of a lot of good lessons through this and say never again will we be taken advantage of Senator well Gwen um two years ago Barack Obama warned about the subprime mortgage crisis John McCain said shortly after that in December he was surprised there was a subprime mortgage problem uh John McCain while Barack Obama was one warning about what we had to do was literally giving an interview to the Wall Street Journal saying that I'm always for cutting regulations uh we let Wall Street run wild uh John McCain and he's a good man but John McCain thought that the answer is that tried and true right right Republican response deregulate deregulate so what you had is you had overwhelming quote deregulation you had actually the belief that Wall Street could self-regulate itself while Barack Obama was talking about reinstating those regulations John on 20 different occasions in the previous year and a half call for more deregulation matter of fact John recently wrote an article in a major magazine saying that he wants to do for the healthc care industry deregulate it and let the free market move like he did for the banking industry so deregulation was the promise and guess what those people who and say don't go into debt they can barely pay to fill up their gas tank I was recently at my local gas station asked a guy named Joey Dano I said Joey how much it cost to fill your tank you know what his answer was he said I don't know Joe I never have enough money to do it the middle class needs relief tax relief they need it now they need help now the focus will change with Barack Obama gor please if you want to respond to what he said about Senator McCain's comments about Healthcare I'd like to respond about the tax increases and uh you know we we can speak in agreement here that darn right we need tax relief for Americans so that jobs can be created here now barock Obama and Senator uh Biden also voted for the largest tax increases in US history Barack had 94 opportunities to side on the people's side and reduce taxes and 94 times he voted to increase taxes or not support a tax reduction 94 times now that's not what we need to create jobs and really bolster and heat up our economy we do need the private sector to be able to keep more of what we earn and produce government's going to have to learn to be more efficient and live with less if that's what it takes to reign in the government growth that we've seen today but we do need tax relief and Barack Obama even supported increasing taxes as late as last year for those families making only $42,000 a year that that's a lot of middle inome uh average American family to increase taxes on them I think that is the way to kill jobs and to continue to harm our economy Senator charges absolutely not true Barack Obama did not vote to raise taxes the vote she's referring to John McCain voted the exact same way it was a budget procedural vote John McCain voted the same way it did not raise taxes number two using the standard that the governor uses John McCain voted 477 times to raise tax taxes it's a bogus standard but if you notice Gwen the governor did not answer the question about deregulation did not answer the question of Defending John McCain about not going going along with the deregulation letting Wall Street run wild he did support deregulation almost across the board that's why we got in so much would you like to have an opportunity to answer that before I'm still on the tax thing because I want to correct you on that again and I want to let you know what I did as a mayor and as a governor and I may not answer the questions the way that either the moderator you want to hear but I'm going to talk straight to the American people and let them know my track record also as mayor every year I was in office I did reduce taxes I eliminated personal property taxes and eliminated small business inventory taxes and as Governor we suspended our state fuel tax we did all those things knowing that that is how our economy would be heated up now as for John McCain's adherence to rules and regulations and pushing for even harder and tougher regulations that is another thing that he has is known for though look at the tobacco industry look at campaign Finance reform okay our time is up here I'm going to move on to the next question Senator Biden we want to talk about taxes let's talk about taxes you have proposed raising taxes on people who earn over to
Asian markets
CNN
Transcript
Right now traders are expecting a very rough day because of what happened on the Dow and also because of really all this uncertainty that's out there. There is uncertainty over this bailout. If the do over in the U.S. House of Representatives is actually going to work. But the bigger concern and the persistent concern is whether there is a global economic slowdown and if the U.S. economy is fundamentally ill. Case in point what happened in the Dow. Yesterday the U.S. Senate passed the bailout. So you would assume on some level that the Nikkei would then respond in like and perhaps close up. But it actually saw a downward trend throughout the day yesterday. And the reason for that is because what we saw were some earnings reports from some of the big Japanese automakers and they were not very good as far as the earnings in the U.S. and sales. There are bigger concerns than this bailout. Bigger concerns that the U.S. consumers simply cannot afford to get those loans not qualifying for those loans anymore. So if the U.S. consumer Japan's number one customer cannot get a loan for the new Toyota the new Nissan or the new Honda three companies that had very bad September to September sales in the U.S. they saw some sales slumps of 20 to 30 percent. Well then we're going to see a direct impact on Japan's very real economy. The Nikkei newspaper this morning is reporting that over the last six months leading up to September that Toyota actually had to slash its temporary workforce by 20 percent. That is something that concerns the lawmakers here in Japan the new prime minister here. So these are the persistent concerns a persistent impact on the very real economy jobs and what these companies actually earn. So these are the bigger concerns in the bailout. And really until those concerns are addressed we're expecting that it's going to be very tentative very uncertain on the markets. Koshal. And I know you mentioned the uncertainty but when you're cutting workforce and production like that. What is the fear level there. As far as the. Did you say the feel level the. No the fear the fear level. Oh the fear level excuse me the fear level here is that if there are no. And we really we should go back to the look at the jobs reports of the last couple of months. Some of the jobs reports have shown that unemployment is. And that really does strike at the very core of what the Japanese economy is having a job is something that really does really talk of it really strike at the actual heart of the Japanese worker. If you don't have a job you can't. Pay for your rent and you can't afford to send your child to school. So there certainly will be a lot of fear as these unemployment numbers rise. And there's a lot of concern that if they can't keep up with the unemployment numbers. There's a lot of concern that if they can't keep up with the unemployment numbers.
Looking beyond the bailout
CNN
Transcript
Many people have been asking after Congress finally passed the bailout plan, now what? Well, for some perspective on how the government action could affect the economy, let's bring in John Authors, who's investment editor with the Financial Times. And just in my introduction to you, I think we hit the nail on the head here. This is a bailout plan which is effectively looking at bailing out the financial system. And that has absolutely no economic stimulus for an ailing economy, does it? No. The task at hand and the task that everybody cared about at the markets was, can we try to ensure that the banking system doesn't fail on us? Not having a failed banking system is extremely stimulative, if you get what I mean. It's very important, first of all, to make sure that the basic plumbing of the credit markets of the financial system work if you want to try doing it. And I don't think there's any stimulus for the economy at all. But, no, you're quite right. The reason for this was to ensure against something truly disastrous. And that initial $700 billion proposal really had nothing to do with stimulating the economy. Yeah, one Democrat I heard said he hated the bill, John, but voted for it because, and I quote, the risk of doing nothing is too hard to take. We've heard that a lot over the past week or so. Mm. And I think the biggest problem for most people is that this bill, which seemed to be inadequate to almost everybody you talk about, including President Bush, who said, you know, it's not ideal, perhaps should have been talked about more, discussed more, not rushed through, because at the end of the day, the markets did what they wanted to do today, and they went down 150 points in the US. OK, I can certainly agree with that to some extent. It should have been talked about and discussed very much more. The time for it to be talked about and discussed was about six months ago. At the point of the Bear Stearns collapse, which was back in March, it was already evidence that at least some really well-detailed plan should be worked out as a contingency, because it was obvious that something like what we've seen in the last month was now a real prospect. You can start apportioning blame there, but I think quite a lot of people would complain, that both the Fed and the Treasury really should have had a much better contingency plan than the three pages they knocked together in a hurry two weeks ago. Sure. But in terms of whether they should have rushed it through in the last couple of weeks, yes, they did need to rush it through. Things are very scary indeed on the markets. It's difficult for banks to fund themselves for any more than one night at a time. Things can move extremely fast. And every day that they delay, they delay. There is a greater risk of something ugly. OK. Well, the next question is simply this. There is a risk of something ugly still happening, given the state of the economy at present. This is plan A. There is no plan B, is there? In terms of what? I think... Well, I mean, if this doesn't stop the rot, as it were, there is no plan B. There's no economic stimulus plan at the moment. Oh, I see what you mean. What's perhaps more important is whether this even deals with the problems of the financial system. And I think a lot of what happened today in the markets was there's been growing concern that not even this will be enough, that it's not just a question of making the markets more liquid again by buying up the securities that created the problem. But because the banks have suffered such great losses, it's probably necessary to inject capital directly into their balance sheets to make sure that they remain solvent, that there's... To use the technical term, there's a solvency issue as well as a liquidity issue. In terms of the prospects for the economy, there's been an awful lot of stimulus held at the U.S. economy this year. That's why the U.S. economy is still not technically in recession. We've had a weakening dollar. We've had tax cuts. We've had interest rate cuts. All right. We are overwhelmingly likely to have a recession of some seriousness. That is why stocks are down more than 9%. And we're going to have a recession of about 9% this week, even though the bailout package aimed at averting Armageddon got through in the end.
What's next for Wall Street?
CNN
Transcript
What a week on Wall Street. It began with the biggest point drop ever in the Dow Jones Industrial Average, 777 points. But investors here and traders say it's not a cure-all, this bailout that's been approved on Capitol Hill. There were just scattered cheers by some traders. One immediately said, what's next after the vote? And that's what many people fear, because there is just a deteriorating set of economic numbers inside the United States economy that gives pause to anyone who wants to start putting some money to work, as they describe it. Whether it's jobs or the credit crunch or loans, there's a myriad of problems ahead. Still, Wall Street will be open for business Monday. Just depends on which way the indicators are ready to go now that Congress has done its part. Richard Roth, CNN, on the floor of the New York Stock Exchange in New York.
Bronx Residents on the Bailout - NYTimes.com
The New York Times
Transcript
I'm Jim nowi I'm a columnist with the New York Times we're on Longwood Avenue in the South Bronx the South Bronx is one of the poorest congressional districts in the country earlier this week Jose Serrano the congressman from this neighborhood voted against the $700 billion Wall Street bailout we spoke to some of the people in this neighborhood about what they thought you think we ought to give them $700 billion no I think you should give it to you know people gave it to everybody else we can bail each other around then we could put it back into the economy and we wouldn't be having the problem that we're having I don't see where uh uh the change however it go is going to affect me as an individual or as part of the community you know it's Corporate America doing what Corporate America does you know that's all it is no organized crime basically it's the new organized crime yeah ain't nothing new about it ain't nothing new about it we not going to see none of that not one red scent no you know whichever way it go whatever way it go we ain't going to feel it we ain't going to see it you know and if we do feel it it's going to be negatively a few of us might lose a few more jobs you know but we ain't going to feel nothing you know positive about it um I'm thinking on a personal level that it may trickle down um and eventually my boss may lose his job and you know a company made and then my old 401K I'm hoping nothing will happen there so I have some concern but um I think at this point we have no choice I had spoken to people that that there were here and the depression you know many years back and they had told me you know what people used to go online with tickets you know to buy food you think we might be facing something like that again and I think it's it's going to happen again it's going to happen again I mean things don't change you know it's going to happen again in
US Financial Crisis Triggers Global Concern
VOA News
Transcript
for many around the world the US crisis is a major concern many people are worried about how the troubled American economy will affect their finances American Lisa Montgomery is an education consultant in London she advises families who want to send their children to us colleges I don't think people think it's just an American problem but the solution is going to have to be American as we look at the government attempting to react to the problem and that's where I think some of the nervousness comes in everyone's Mone is in the game but the US government's going to have to decide how to fix it Steven Rivier is an American living in South Korea he recently launched a new magazine there's no telling where this is going to go this this could be the next depression and it could be a blip on the screen the crisis is also on the minds of world leaders at talks in St Petersburg Thursday Russian president Dimitri medv and German Chancellor Angela Merkel spoke about the crisis the financial crisis should teach us a lesson because we can't afford such crises every couple of years it has been obvious for a long time that we need more transparency what did the latest developments show us they showed us that the time when one economy and one currency dominated are gone for good Chancellor Merkel and Mr medv called for a financial system that takes into account the interests of many nations for the moment European economies are taking a hit because of the US crisis Stuart Rose is CEO of British retailer marks and Spencer the government and National governments need to get liquidity back they need to get the housing market back on track we need to get some visibility on interest rates and we need to get customers confident that as I said that they can plan their individual Futures the retailer suffered its worst decline in nearly a decade amid plunging consumer confidence in Britain Robert Rafel VA news
US House of Representatives to Vote Friday on Bailout
VOA News
Transcript
an adams isra money year re w night us approved the 700 billion rescue plan by nearly ae margin us house began their debate thursday cle do what we iau toes we need reg order not we want the right deal not a fast deal the plan provides tax breaks for business clm pays ce failed financial another amendment raises the federal insurance on bank deposit to the head of one credit uns that type of security will stop americans like ann adams from withdrawing money absolutely a lot of fear a lot of fear from our members i think they keep their money here and move it around gives much more flexibility some economist say the cran amic moree more create more glob equ the vote nothing to cm wall stre the dow jones cled down 348 points on thursday investors than voa
House Approves $700B Bailout
CBS
Transcript
[Music] under pressure from skittish markets and voters worried about layoffs and dwindling nests the house reversed course there aren't many times we get a second chance to do the right thing 4 days after political bickering derailed the first bailout plan abroad bipartisan majority approved the unprecedented Financial rescue sweetened by tax cuts and increased insurance for bank accounts things are really bad and we don't have any choice we're tenness Zack wamp was one of 25 Republicans who switched from no to yes votes Democrats had 33 converts including Elijah Cummings of Maryland sometimes you just have to do what is necessary at that moment approval in the house ended two weeks of political turmoil on Capitol Hill and President Bush quickly signed the bill after congratulating treasury secretary pson and Congress these steps represent decisive action to ease the credit crunch that is now threatening our economy under the bailout the treasury can buy up to $700 billion in Bad Assets for from Financial firms those companies in turn would be forced to cap executive compensation and give the government stock to protect the taxpayers investment there's also help for families facing foreclosure in addition FDIC Insurance limits for bank accounts will be raised for one year from1 100,000 to $250,000 and the tax changes added to the bill include the so-called AMT patch which will lower tax rates for 25 million middle- inome Americans those tax cuts costing an additional 110 billion dollars attracted new support from both parties from members who viewed the original plan as a taxpayer giveaway to Wall Street and calls from voters who overwhelmingly had opposed the first plan had turned around in recent days with increased anxiety over unstable markets the major impact that change votes was economic reality the government has 45 days to set up the program and while it's not clear when treasury will buy that first batch of Bad Assets we're told hiring for the program begins on Monday Katie by
Unemployment On The Rise
CBS
Transcript
the final jobs report before election day showed the unemployment rate was unchanged last month 6.1% but that's only because many Americans stopped looking for work employers cut 159,000 jobs in September the 9th straight month we've lost jobs and as Anthony Mason reports things may get worse before they get better the worst month of job losses in five years could be an alarming turning point for the economy this may signal the shift from what has been a mild recession this year uh to a more severe recession last year the US economy created more than a million jobs this year we've already lost 760,000 and Economist lakshman Athan says the credit squeeze will mean mounting layoffs is this rescue package too late uh yes if you if you're trying to save the economy it's absolutely too late September's job losses came across the board led by manufacturing construction and Retail in St Louis 27-year-old Drew langenberg who has a master's degree has been looking for work for 3 months I put in applications and I don't get anything back he's making ends meat by working in a wine shop while laid off Missouri workers like Elizabeth Williams are waiting longer for their unemployment checks 3 weeks went by four weeks went by still nothing the 4-week weight has jumped to 6 weeks says Missouri's Department of Labor because calls for help have doubled from 6,000 to 12,000 a week in Culver City California Vincent Williams has cut out overtime for employees at his fried chicken restaurant we're basically in a hiring free he's struggling to keep the restaurant going since his bank tightened lending they haven't revoked the line of credit they just have so severely restricted it that is basically non-existent the Congressional bailout is supposed to rescue Banks and get money moving again but it'll take time this is not going to unfreeze the credit markets right away is it no I think at best the hope is that it will begin a thawing process that will take months so economists say expect the job losses to continue to rise we appear to be headed into a deep recession that could last until the middle of next year Katie Anthony Mason thank you so much