Chris Cantell Discusses Financials: Still waiting for the rescue plan results by Zuzana Zelenakova

The stock market is in the state closely resembling panic although the financial rescue plan was approved by the US Senate on Wednesday. The earlier version of the plan was rejected on Monday. In comparison the new version added tax breaks and higher limit for insured bank deposits. According to some the rescue plan does not have the potential to solve the problem entirely but it will at least start the process. Both Republicans and Democrats worked together on the bailout. "In the years that I've been here, I can't recall a single time where - in this close proximity to an election - both sides have risen above the temptation to engage in partisan game playing, if you will, to address an issue of great magnitude," said Senate Republican Leader Mitch McConnell to the reporters. The earlier rejection of the bill highly disturbed the global markets causing the international sell off but US officials claim the rescue plan is the right remedy for the financial system. Neel Kashkari, the former Goldman Sachs executive, was appointed with looking after the program. It will of course take some time for it to achieve the required effect. "It's going to take awhile to restore confidence in the financial system. But one thing people can be certain of is that the bill I signed is a big step toward solving this problem," said President Bush in San Antonio, Texas. However, not many seem to be convinced by this also regarding the difficulties on the European and Asian markets. Everything was being sold off, not only financial sector. The financial institutions are falling down like dead flies in the United States, Bear Stearns, Lehman Brothers, Washington Mutual just to mention few. "I think what's needed is a global rate cut. But even that I don't think would solve the basic problem, which is that everybody's just scared of loaning money to anybody else," said David Wyss, chief economist for Standard and Poors in New York.


related story: http://news.yahoo.com/s/ap/20081007/ap_on_bi_ge/financial_meltdown;_ylt=ApE176qpBw2Gn86HrbtiNjSs0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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edited by beata Biskova