A re-tool version of the $700 bailout plan will be voted on by the Senate later Wednesday evening. Being that the House of Representatives failed to pass it on Monday, the bill was enhanced to give it a better chance of getting voted through. The enhancements came in the form of primarily two additions that would make the plan more attractive.
Senate leaders added in an adjustment on the government’s FDIC cap of insured bank deposits to go from $100,000 to $250,000. They also attached it to business and energy tax breaks, that were previously opposed by House democrats. Much of the republican base that rejected the bailout plan on Monday, may be more inclined to take a look at this version because of this.
This new and improved bailout plan, would allow the Treasury Department to buy problem mortgage-related assets from banks. Their hope was to help with unlock credit markets and stop the country from falling into a deeper crisis. But with the new add-ons, the price tag is likely to exceed the $700 billion that Secretary Paulson initially asked for. Supporters say that the tax payers will get most if not all of the money back, but opponents don’t seem agree.
Some of those supporters are to include current presidential candidates Senator Barack Obama and Senator John McCain, both of whom have said that they will be in attendence at the vote this evening. But as we saw last week, this is only part one of the bill’s passing through the Senate vote. Part two, where the bill died on Monday, lies with the House vote. We won’t know the bill’s fate until that comes around. Meanwhile, some seem optimistic while others are still leery of what the redux will do.
Not for nothin’, but I see all the build up and the Senate support I saw last weekend before the House voted on Monday. Even though this time around, extra toppings may lure more votes, it could still come down to what people want…or don’t want. Many people still believe that this price for this bailout is still too much, too fast, and too ambiguous.
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