US to pump bailout billions into banks: Bush

Published: Tuesday October 14, 2008

US President George W. Bush on Tuesday unveiled new steps to confront the global financial meltdown, including plans to use some of a 700 billion dollar bailout to buy stakes in banks. Bush also said the US government would temporarily insure all non-interest bearing transaction accounts that benefit small businesses and temporarily guarantee most new debt issued by insured banks, and that the Federal Reserve would soon act as the "buyer of last resort for commercial paper." "These measures are not intended to take over the free market, but to preserve it," the US president said in brief remarks in the White House Rose Garden. Bush said the US government would use part of a 700-billion-dollar economic rescue package -- reportedly 250 billion dollars worth -- "to inject capital in the banks by purchasing equity shares." "Second and effective immediately, the FDIC will temporarily guarantee most new debt issued by insured banks," he said, referring to the Federal Deposit Insurance Corporation. "And third the FDIC will immediately and temporarily expand government insurance to cover all non-interest bearing transaction accounts," Bush said. "Fourth, the Federal Reserve will soon finalize work on a new program to serve as a buyer of last resort for commercial paper," said Bush, who worked to alleviate concerns over the widening government role in the US economy. "Each of these new programs contains safeguards to protect the taxpayers," he promised. "The government's role will be limited and temporary." October 14, 2008 McCain's Economic Proposals Posted by BLAKE DVORAK Some of McCain's economic proposals he outlined in Pennsylvania today: * Suspend rules mandating that investors must begin to sell off their IRAs and 401(k)s when they reach 70 1/2 years old. * Cut the tax rate for retirement-account withdrawals to 10%. * Reduce the tax rate on capital gains to 7.5%. * Reduce the reduce the federal business tax rate from 35% to 25%. * Eliminate taxes on unemployment benefits. As for rhetoric, this passage stands out: This weekend, a plumber concerned that Senator Obama was going to raise his taxes asked him directly about his plan. The response was telling. Senator Obama explained to him that he was going to raise his taxes to quote "spread the wealth around." This explains how Senator Obama can promise an income tax cut for millions who aren't even paying income taxes right now. My friends, my plan isn't intended to force small businesses to cut jobs to pay higher taxes so we can "spread the wealth around." My plan is intended to create jobs and increase the wealth of all Americans. Probably a story we'll hear at tomorrow's debate. The Obama camp responded: John McCain's latest gambit is a day late and 101 million middle-class families short. McCain's plan would spend $300 billion to bailout the same irresponsible Wall Street banks that got us into this mess without doing anything to help jumpstart job growth for America's middle class. His plan continues to provide no tax relief at all to 101 million hardworking families, including 97 percent of senior citizens, and it does nothing to cut taxes for small businesses or give them access to credit. Senator McCain also shows how little he understands the economy by offering lower capital gains rates in a year in which people don't have an awful lot of capital gains. His trickle-down, ideological recipes won't strengthen our economy and grow our middle-class, but Barack Obama's pro-jobs, pro-family economic policies will.