Senate to Vote On Bailout Package Wednesday - October 1st

Submitted by SadInAmerica on Tue, 09/30/2008 - 10:38pm.

In a surprise move to resurrect President George W. Bush's $700 billion Wall Street rescue plan, Senate leaders slated a vote on the measure for Wednesday -- but added a tax cut plan already rejected by the House.

Majority Leader Harry Reid, D-Nev., and GOP Leader Mitch McConnell of Kentucky unveiled the plan Tuesday. The Senate plan would also raise federal deposit insurance limits to $250,000 from $100,000, as called for by the two presidential nominees only hours earlier.

The move to add a tax legislation -- including a set of popular business tax breaks -- risked a backlash from House Democrats insisting they be paid for with tax increases elsewhere.

But by also adding legislation to prevent more than 20 million middle-class taxpayers from feeling the bite of the alternative minimum tax, the step could build momentum for the Wall St. bailout from House Republicans.

The surprise move capped a day in which supporters of the imperiled multibillion-dollar economic rescue fought to bring it back to life, courting reluctant lawmakers with a variety of other sweeteners including the plan to reassure Americans their bank deposits are safe.

Before Reid and McConnell's move, lawmakers, President Bush and the two rivals to succeed him all rummaged through ideas new and old, desperately seeking to change a dozen House members' votes and pass the $700 billion plan.

Dow Enjoys Third-Largest Point Gain

One day after the biggest point drop in its history, the Dow Jones industrial average rose 485 points, or more than 4½ percent -- the latest in a string of extraordinarily volatile days in the stock market. It was third biggest point gain in the Dow's history and the biggest percentage climb in the Dow in six years.

The Dow recovered about two-thirds of its record 778-point drop from Monday, but the action in stocks was almost a sideshow against the growing alarm about the credit market, relied on by companies large and small to pay for everyday expenses, from basic supplies to employee salaries.

The benchmark rate that banks charge to lend each other money rose sharply, making it more expensive for everyone to borrow. Credit card debt and many mortgages are tied to the rate, too, so everyday Americans will feel the pinch.

At the close, the Dow was up 485.21, or 4.68 percent, to 10,850.66. It had fallen almost 7 percent on Monday to its lowest close in nearly three years -- though the drop was far shy of the 20-plus-percent drops of the 1987 stock market crash and the Great Depression.

Broader stock indicators also bounced higher. The Standard & Poor's 500 index rose more than 5 percent for the day, and the Nasdaq composite index was up almost 5 percent.

It was another day of remarkable volatility on Wall Street. Since the night of Sept. 14, when word spread that investment house Lehman Brothers would be forced into bankruptcy, all but one of the 12 trading days has ended with the Dow up or down by more than 100 points.

For the month of September, 15 of the 21 trading days saw triple-digit swings in the Dow. The blue chip index ended the month down about 695 points.

On Wall Street, many traders likely will proceed cautiously while they gauge prospects for resurrecting the bailout effort, which was backed by leaders of both parties.

September 30, 2008 - source KRIOTV

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Submitted by SadInAmerica on Tue, 09/30/2008 - 10:38pm.