Chris Cantell Discusses Financials: Firm Critics over Rescue Plan Among Congressmen by Milota Sidorova

Democrats and Republicans alike agree one thing & critics on 'Paulson plan'.
The first passing discussion yesterday brought out more doubt and Henry Paulson along with Ben Bernanke had to use all determination to persuade Senators to do so.

First of all, many of them see the plan as 'not acceptable' as mentioned by Republican Senator Richard Shelby of Alabama. There's significant need to seek for another alternatives.
According few of the Congress, $700 billion either $700 trillion can't save the market nor fix the problem which core bases down in between undervalued mortgages and overpriced loans.
It's just a plaster not a cure.

Fears and delays in the Congress that was the worst option for Paulson and Bernanke duo.
They immediately declared delay will slow down not just credit market but the all economy.
When questioned of tax payers impacts, Paulson answered tax payers are always in danger, so the main task was to fix the credit market. Literally the backing billions are going to influence the ordinary citizen anyway.

Democrats were trying to move on concessions of administration on domestic spending and middle class economics. Republican Senator Jim Bunning, R-Ky argued the massive bailout was not the real solution and moreover this financial socialism was clearly un-American. If the company ultimately heads towards the bankrupt it should also bear the consequences.

FED mission promised the investigation in cases of Freddie Mac, Fannie Mae and AIG as well. But now, it was the time to pass the proposal into reality. However it seems it won't happen that soon. Bernanke urged to move on discussion and almost fierce declared the delay will increase jobs lost followed with jumping credit rate and home foreclosures.

The Democratic party had some other points to deal. First of all to forced judges to rewrite mortgages to lower bankrupt homeowners monthly payments. Senator Chuck Schumer D-N.Y. also suggested whether phasing model could be proposed. FED would cover $ 150 billion with a promise for upcoming money. This time, Republicans were firm and united and dropped out the whole idea.

More than troubled issue remained also the purchase price when FED representatives proposed maturity price, based on the expectations what they would be worth. Many Congressmen didn't believe of promised substantial benefits that Mr. Bernanke was speaking of. Assets wouldn't be bought according the market rules. It could deepen the bill in large scale.

Apart from Capitol Hill talks, distressing market overreacted. The shares were dropping. Dow Jones fell overnight 160 points and Treasury yields were all declining as well. As for financials, Treasury plans to sell $34 billion share in 2 year notes today and $24 billion in 5 year notes tomorrow. Naturally the step will be important to outline the future atmosphere all around Treasury. As for the government, it's still keeping its AAA rating. If it failed, the major buyers like China could immediately scale back their holdings.

The situation has to be solved now. However displayed as united decision, serious critics remain and we might see another market issue becoming a political one. Just six weeks before the election.


related story: http://news.yahoo.com/s/ap/20080923/ap_on_bi_ge/financial_meltdown;_ylt=AsGOCsZlxkw6fPjesKgrHUOs0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are original content from young talents around the world and are selected for you by Chris Cantell.


edited by Beata Bsikova

Short Sum over American Wednesday 9/24. by Milota Sidorova

Prezidential candidate John McCain doesn’t believe the rescue plan as proposed will pass through Congress. Due the serious situation he has even suspended his campaign to focus more on financial crisis. How generous, one might say. The United States are running out of time. The rescue plan hasn’t found its green light in the highest lawmaking institution yesterday.
Paulson, Bernanke, Bush they all seem like one when criticized the opinion of powerful senators. The grave threat is hanging above U.S. The mortgage crisis that led into credit crisis will inevitable impact all economy. People won’t stop losing their jobs or their houses, and no one, including Paulson himself can’t predict the consequences.

After the government has announced the proposal American markets eased for a while. However, this gentle breeze didn’t last that long. Indexes, stocks and dollar were falling, providing great opportunities for foreign investors to buy shares.

The greatest rescue package of $700 billion has deepened a national debt. It is not a game what they’re trying right now. The government has called on FBI to start investigation over bankrupted Lehman Brothers, spared AIG, Fannie Mae and Freddie Mac.
Despite of public declaration, FBI officials didn’t prove much of it. Richard Kolko, the spokesman declined to confirm any investigation details except of FBI was running 26 cases of potential corporate frauds related to the collapse of U.S. lending industry.

FBI Director Robert Mueller suggested releasing any unnecessary information could negative fluster yet so troubled stock market. He said FBI will investigate at all levels.

Lehman Brothers officials denied comment FBI statement, Freddie and Fannie spokesmen were not currently available. AIG promised cooperation however hasn’t received any suggestions.

According FBI in preliminary state of investigation there are no imminent charges endangering collapsed companies.
So while FBI keeps the strategy of mouth shut, politicians do the opposite. With a little hope, we might live the final decision in Capitol Hill before Monday morning.


related story: http://news.yahoo.com/s/nm/20080924/ts_nm/us_financial_bailout_fbi_news;_ylt=ArU2Ouv5KeK0x3QUaO03o5Os0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are original content from young talents around the world and are selected for you by Chris Cantell.


edited by Beata Biskova