Saturday, October 4, 2008

FAILED BAIL-OUT PLAN



The house of representatives has deafeated a $700 billion emergency rescue package for staggering U.S.financial industry.The vote against the rescue was 228 to 205,with 133 Republicans turning against president Bush to join 95 Democrats in opposition.The bill was backed by 140 Democrats and 65 Republicans.The vote was a poloitical defeat for president Bush who tried to muster national support for a recovery plan in a televised address recently,then lobbied wavering Republican legislators in intensely personal telephone calls before voting.Bush and his economic advisors,as well as congressional leaders in both parties had argued that plan was vital to insulate ordinary Americans from the effects of wall streets' bad bets.The version that was up for vote was the product of marathon closed door negotiations on capitol hill.It is alarming,how quickly tables can turn.Leading U.S.commercial bank WACHOVIA CORP.which was looking to acquire MORGAN STANLEY till a few days back,has now ended up being swallowed by CITIGROUP.