Bush Signs $700 Billion Rescue Deal
President Bush today signed the $700 billion dollar “financial rescue deal” for the nation’s financial system.
He signed the deal just after the House of Representatives voted 263-171 for the measure. The deal was done in order to give an all together new start to the stalled credit markets and estimated to cost more than 700 billion dollars.
”By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country,” Bush said this in the White House Rose Garden
"Congress took a big step in the direction of at least giving us the tools necessary to bring some stability into the marketplace," Bush said on Saturday.
According to Bush "My administration will move as quickly as possible, but the benefits of this package will not all be felt immediately. The federal government will undertake this rescue plan at a careful and deliberate pace to ensure that your tax dollars are spent wisely,”
"I’m confident by getting our markets moving, we will help unleash the key to our continued economic success: the entrepreneurial spirit of the American people," he further said.” he further said.
California Gov. Arnold Schwarzenegger in one of his letters said that, his state and others "may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal Treasury for short-term financing."
“The issue is stopping the panic,” said Adam Posen, who is the deputy director of the Peterson Institute for International Economics in Washington. “The plan’s not perfect, but it’s certainly better than doing nothing. Now Treasury has to be very aggressive about purchasing a wide range of assets very quickly.” he further said.
The legislation from time to time was getting a big push from the automakers, dealers and suppliers all over the country. They were really worried of the fact that this bankruptcy would bring the normal financial activity to a standstill.
The collapse in the sales of automotives "is an important reason we’re moving this bill," Rep. Barney Frank, D-Mass., said today.
Chrysler LLC CEO Bob Nardelli in this statement said that "as a result of the economic contraction and illiquidity in the credit markets, the ability of domestic manufacturers to finance new motor vehicle sales for consumers has been substantially weakened."
CEO Rick Wagoner of General Motors, said that frozen credit markets are "denying consumers and businesses the needed cash for home loans, car loans, small-business loans and the critical investments that grow the economy and create jobs."
According to the Treasury Secretary Henry Paulson, "The broad authorities in this legislation, when combined with existing regulatory authorities and resources, gives us the ability to protect and re-capitalize our financial system as we work through the stresses in our credit markets,"
Views of General Public:
According to a new Ipsos-McClatchy poll, “Nearly two-thirds of the public thinks that the government lacks the ability and power to restore consumer and investor confidence and 76 percent think that the economy will worsen.”
