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Congress and the President Come To An Agreement For The Financial Sector

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photo by NCinDC1

It looks like the Congressional leaders and the President have come to an agreement to save the financial industry with the $700 billion that the Treasury Department has been asking for. Lawmakers pushed for joint spending controls with the Bush Administration. The Bill will go to the house tomorrow for a vote. President Bush feels that Congress will pass this Bill without any problems, He said in a written statement released today, “Without this rescue plan, the costs to the American economy could be disastrous,”
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It seems thought that others don’t share Bush’s optimism.Capitol Hill leaders are now moving to sell it to colleagues in both parties and acknowledged they were not certain it would pass. “Now we have to get the votes,” said Sen. Harry Reid, D-Nev., the majority leader.
Of course we have Nancy Pelosi, who is always looking for a photo “op” as well as showing that she actually cares about the American people said “This isn’t about a bailout of Wall Street, it’s a buy-in, so that we can turn our economy around.”
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The plan would let Congress hold on to half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification — and subject to a congressional resolution of disapproval.
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“This is the bottom line: If we do not do this, the trauma, the chaos and the disruption to everyday Americans’ lives will be overwhelming, and that’s a price we can’t afford to risk paying,” Sen. Judd Gregg, the chief Senate Republican, told The Associated Press. “I do think we’ll be able to pass it, and it will be a bipartisan vote.” Some of the lawmakers feel that it might not pass until possibly Wednesday.
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“This is something that all of us will swallow hard and go forward with,” said Republican John McCain. “The option of doing nothing is simply not an acceptable option.”
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Barack Obama Of course is trying to claim credit for taxpayer safeguards added to the initial proposal from the Bush administration. “I was pushing very hard and involved in shaping those provisions,” he said.
I don’t know how we even need the other politicians in Washington when we have this man who thinks of everything for the American people (yes, I’m only joking). Sort of the way that Obama is a joke of a candidate.
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The best part of the plan is that there will be guidelines to the fact of the “Golden Parachutes”. Executives whose companies benefit from the rescue could not get one, as well as any firm that benefits the most (receiving more than $300 million) would be taxed highly on any compensation for their top execs over $500,000.
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I look forward to see how Wall Street views this tomorrow morning. I don’t see this being anything but a good thing throughout the week. I expect the financial sector to be up at the end of the week.

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