Wednesday, October 1, 2008

Bailout passes Senate

A revised version of the the $700 billion financial industry bailout passed in the Senate this evening, 74-25 and is apparently gaining ground in the House.

The Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance, according to the AP.

The heart of the bill, and the opposition to it, remained the same. It would enable the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and keep the economy from a deep recession.

Bailout passes Senate, House foes soften - Yahoo! News
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