Senate approves the 700 billion financial bailout plan



Due to a majority of votes in favor of the bailout plan, the House of Representatives are under extreme pressure to pass the bill later this week on Friday.

The bill’s rejection on Monday has caused dramatic and historic drops on the stock market.

President George W. Bush announced that the bill pumping 700 billion is inevitable and necessary for banks to be able to borrow money and establish new credit accounts.

The new plan accepted by the Senate differs from the previous one presented by Henry Paulson, as it only contained 3 pages briefly describing buying debts with taxpayer’s money. This plan has raised much negative feedback due to a fact that the public opinion perceived it as “Helping Wall Street “ greedy, irresponsible bankers instead of ordinary people trying to pay their mortgage.

The new plan has been upgraded to increase the Federal deposit insurance from 100 thousand to 250 thousand dollars, the limits of salaries for CEOs of large bank s as well as extending various tax cuts with overall value of 110 billion dollars for business owners. All this is expected to stimulate economic growth.