September 25 was a day of disappointment for the American government and the Wall Street although it began with much hope that day.
Negotiators from the relevant House and Senate committees had a nearly three-hour meeting in the Capitol earlier Thursday. Afterwards, Congress leaders announced that they would have reached in principle consensus on the government's proposed 700-billion-US-dollar financial bailout plan. And Majority Leader Harry Reid, Democrat of Nevada, said that the Senate would hopefully take up a procedural vote on the bailout plan at its Saturday session.
All signs available Thursday indicated that a deal would be finalized at a top-level White House meeting that included President Bush, senior lawmakers and presidential candidates Barack Obama and Hohn McCain in the afternoon. US stock market shares opened high during the day owing to an anticipated passage of the government proposed bailout plan and, nevertheless, the meeting was of no avail due to a sudden assault by House Republicans.
After the 700 billion-dollar-bailout proposal was submitted to the House last week, high-ranking financial officials of Bush administration have frequented Congress for hearing whilest trying to convince those Congressmen in doubt or in objection. During the those days awaiting Congress to ratify the bailout plan, the extremely sensitive US stock markets turned turbulent with upheavals. On Wednesday evening, President Bush gave a stern warning at his special prime-time TV address on American economy to the nation. He said the "entire U.S. economy is in danger", and called for bipartisan cooperation in Congress to pass as soon as possible the $700 billion financial rescue plan, to rescue the U.S. economy. So, a joint session of Congress was held early Thursday. However, John A. Boehner of Ohio, floated a new plan for addressing the crisis at the start of the session and announced that the Republican caucus could not prop the government plan to buy foreclosures from banks.
In fact, the US government's proposed bailout plan has been in trouble after it was submitted to Congress. The plan poses the greatest market intervention even since the Great Depression the early 1930s and its costs equal more or less the direct spending from the Iraq War over the past years and exceeds the Pentagon's total annual appropriations for a year.
the bailout plan sparks an acute, wide debate between the Capitol and the U.S. government since it is short of details, but they reached consensus on a couple of key points: The first is on whether legislation should include limits on the pay packages of Wall Street executive whose companies will benefit from the proposed bailout, and the final agreement reached by both sides is that restriction should be placed on the pay packages of the executives of some firms. Secondly, the interests of taxpayers should be protected.
The third point concerns appropriations of bailout funds. Congress stands for a payment by installations, as it is unwilling to grant the US Treasury the right to use such an immense sum of capital. As a comprise deal, the 700 billion dollar of bailout funds are divided into three sections: The first sum of 250 billion dollar government bailout will be paid immediately; the president is to certify the need for additional 100 billion dollars on his own authority: and Congress will not have the power to block the last 350 billion dollars through a vote unless it has objections within 30 days.
The fourth is relating to the audit monitor of bailout plan. An Auditor-General has to be appointed, and it is up to the government accountability office, an investigative arm of Congress, to conduct regular audit of funds.
Nevertheless, a pending issue at present is whether or not to amend the bankruptcy act, and to allow judges to change the terms of mortgage loans for borrowers in bankruptcy. Democrats have all along pressurized for actions to help those homeowners and families who have sunken in dire need instead of merely rescuing Wall Street bankers.
In Congress debate or disccussions, the attitude of conservative House Republicans remains an uncertain factor. And Democrats have insisted that House Republicans will first need to reach consensus inside their party before the eventual adoption of the bailout plan. However, the prospect of U.S. bailout plan is not so dim or gloomy despite its ups and down owing to the objection of House Republicans, note American media opinions. As the US presidential election is only five weeks away, Congressmen will have to mull over their political gains and losses instead of acting presumptuously to risk an economic collapse in the U.S.
By People's Daily Online, and its author is PD resident reporter in U.S. Ma Xaoning
|
Comment
Tell A Friend
Print Format
Save Article