Posts

Showing posts from September 29, 2008

Tortuous route to Washington's US$700b bailout

Business Times - 30 Sep 2008
Intertwined with the long and hectic negotiations was the presidential election campaign, especially John McCain's

By LEON HADAR
WASHINGTON CORRESPONDENT

ONE of the most dramatic and consequential weeks in Washington's history ended on Sunday after the Bush administration and US lawmakers reached a deal over the US$700 billion rescue of US financial markets. The deal is expected to be approved by Congress.

The political and legislative spectacle unfolded on Capitol Hill after Treasury Secretary Henry Paulson and US Federal Reserve chairman Ben Bernanke had warned Congressional leaders that America could experience a devastating collapse of the financial markets and an economic slump akin to the 1929 stockmarket crash and the ensuing Great Depression.

US lawmakers gave the green light to the administration's bailout plan and its centrepiece - using some of the US$700 billion of taxpayer money to buy distressed assets from failing banks - before t…