The great super power of the United States Senate will vote again on Wednesday evening on a revised 700 billion dollar Wall Street bailout, after the House of Representatives sparked economic turmoil by rejecting the original package.
The White House and Congressional leaders would keep working and insisting to 700 billion of an unprecedented plan to buy a distressed and a toxic bank’s least desirable mortgage assets by using American taxpayers money.
Even if the plan is successful, the economy will probably shrink in the final quarter of this year and in the first quarter of next year, meeting the classic definition of a recession. The unemployment rate — now at a five-year high of 6.1 percent — is expected to hit 7 or 7.5 percent by late 2009. That would be the highest jobless rate since after the 1990-91 recession.
The 700 billion deal to bail out the financial industry may be close to becoming reality but who would believes that’s the 700 billion going to be the final costs?
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