For Immediate Release
Senate Approves Bailout
Ellen Frank: Situation does not require the hasty passing of a terrible bill
WASHINGTON - On Wednesday night, the US Senate passed, by a margin of 74-25, a renovated version of the same Paulson rescue bill that the House rejected on Monday. The Paulson proposal has stayed relatively intact however, with the central new additions to the bill taking the form of tax breaks and increased federal deposit protection.
The bill approved by the Senate included tax breaks for the middle class and businesses, measures senators hoped would make the bill more palatable for the House. It would also raise the Federal Deposit Insurance Corp.'s coverage cap for deposits to $250,000 from $100,000.
Republican John McCain and Democrat Barack Obama made a rare appearance to cast yea votes. Earlier both presidential candidates had urged their fellow senator to get behind the resurrected financial bailout bill saying it was necessary to stabilize the economy. In the Senate 9 Democrats, 15 Republicans and 1 Independent voted against the bill
The Real News Senior Editor spoke to Paul Jay spoke to Ellen Frank, Associate Professor of Economics at the University of Massachusetts. Frank says " I don't think we will ever see anything in the US like the 1930 style period. We are not going to see 25% unemployement rates. We have government fiscal policies in place now. That is not a problem. That doesn't mean we will not face serious recessionary pressure, serious unemployment and serious problems in the credit market. It doesn't mean we couldn't face the problem Japan faced in 1990."