Bush confident bailout bill will stabilize economy
Package will be voted on ahead of schedule
By JULIE HIRSCHFELD DAVIS
Associated Press
Monday, September 29, 2008 10:41 AM PDT
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| Traders work on the floor of the New York Stock Exchange, today. Markets remain strained ahead of a planned House vote on an unpopular $700 billion plan to rescue troubled financial companies and as investors look over a deal for Wachovia Corp.’s banking operations. |
WASHINGTON — Key supporters of a Wall Street bailout package prodded lawmakers to approve the plan hours ahead of a difficult House vote on today, with President Bush saying it is needed to ‘‘keep the crisis in our financial system from spreading throughout our economy.’’
‘‘Every member of Congress and every American should keep in mind that a vote for this bill is a vote to prevent economic damage to you and your community,’’ said Bush, fully aware that congressional passage of the $700 billion compromise legislation is far from assured.
‘‘With this strong and decisive legislation,’’ he said, ‘‘we will help restart the flow of credit so American families can meet their daily needs and American businesses can make purchases, ship goods and meet their payrolls.’’
The package cleared a key procedural hurdle on the House floor this morning with a 220-198 vote to move it to three hours of general debate and a final vote, likely by midday or early afternoon.
As debate opened on the package, Rep. Barney Frank, D-Mass., one of its architects, called the measure a ‘‘tough vote,’’ but a necessary one to stave off a financial meltdown.
‘‘Many of us feel that the national interest requires us to do something which is, in many ways, unpopular,’’ said Frank, the Financial Services Committee chairman. ‘‘It is hard to get political credit for avoiding something that has not yet happened.’’
Two leading players in the negotiations also spoke early today, taking to television news shows to lobby for approval of a package deeply unpopular with a public angry that taxpayer money will save Wall Street firms from heavy risk-taking.
Thousands of angry phone calls, e-mails and letters have poured into Capitol Hill from constituents. Their message essentially: it’s a hold-your-nose-and-vote matter.
Sen. Chris Dodd, D-Conn., said failure to act would spread the contagion of frozen credit markets even further.
‘‘This is not just about Wall Street,’’ said the Banking Committee chairman.
Sen. Judd Gregg, R-N.H., told The Associated Press: ‘‘It’s one of those situations where if it passes and works, people will never know how close we were to the brink.’’
Still, both men said the necessity of such massive government action is a sad day for the nation. Asked if the legislation, slated for a vote in the House later today and a Senate vote as early as Wednesday, would pass, Dodd said only: ‘‘We hope so.’’
