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America refuse bail out


The Raven

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The lower house of the US Congress has voted down a $700bn (£380bn) plan aimed at bailing out Wall Street.

 

The rescue plan, a result of tense talks between the government and lawmakers, was rejected by 228 to 205 votes in the House of Representatives.

 

Members of President George W Bush's Republican party were strongly opposed to it. About two-thirds of them refused to back it.

 

Shares on Wall Street plunged within seconds of the announcement.

 

Mr Bush had earlier appealed to lawmakers to pass the bill, saying it would restore economic confidence.

 

A White House spokesman said that the US leader was "very disappointed" by the result.

 

He would meet members of his team in the coming days to "determine next steps", spokesman Tony Fratto said.

 

The BBC's Adam Brookes in Washington said Democratic leaders in the House were likely to try and convince a number of their members who voted against the bill to change their minds in coming days.

 

Impassioned debate

 

The vote came as banks failed in the US, Europe and the UK.

 

The fourth largest US bank, Wachovia, is being bought by Citigroup after becoming the latest to hit problems.

 

In Europe, Benelux giant Fortis was bailed out by three governments, while in the UK the Bradford & Bingley bank was nationalised.

 

The US Federal Reserve, the European Central Bank and eight other central banks announced further moves to combat the crisis, by making a further $330bn available to provide liquidity to global money markets.

 

Speaking ahead of the vote, Mr Bush had argued that the bail-out plan was a "bold" one which he was confident would restore strength and confidence to the US economy.

 

But after a several hours of impassioned debate, the bill's opponents - the majority of whom were from the Republican Party - got their way.

 

http://news.bbc.co.uk/1/hi/business/7641733.stm

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Hey? in english?

 

The americans voted about 10 minutes ago on a bill to inject a 700 Billion dollar bail out to thier banking system. They voted aganst it.

 

Bush said before the vote that should it not be passed it could mean the end of the banking system as they know it.

 

6 points where wiped off the US stock market within minutes of the vote coming in.

 

In short the USA is now in deep poo and so will our market when it opens tomorrow

 

EDIT!

 

or copy and paste from any news site LOL

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The americans voted about 10 minutes ago on a bill to inject a 700 Billion dollar bail out to thier banking system. They voted aganst it.

 

Bush said before the vote that should it not be passed it could mean the end of the banking system as they know it.

 

6 points where wiped off the US stock market within minutes of the vote coming in.

 

In short the USA is now in deep poo and so will our market when it opens tomorrow

 

Yeah, got that... just was a bit brief, I only caught a bit on the news so thought I'd stick up the bbc link as well :)

 

Not good news really, I'm tempted to start asking for my salary in cash and stashing it under the bed.

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It was only a matter of time before the real value of companies came to light rather than the paper value. I remember this during the DotCom boom of 2000, values where SO over inflated and it all collapsed. This time however it isn't just websites, it is people's homes. Without being a scare monger, I foresee a much harder shake up of the markets occuring. Already they are compromising the capitalistic system by controlling the markets by forbidding short selling and such.

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Oh good. My shares have already dropped significantly in value in the past month. I guess tomorrow, they'll be worth about 50p. :(

 

I wouldnt worry to much they are going back to the drawing board and reworking the deal. The Issues seem to have centered around Senior Democrat Nancy Pelosi and her comments before the vote

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The bigger issue for us based here in the UK is the knock on effect. Most of the banks over here have investments over in the states and with these collapsing it will wipe value off the local banks. B&B has already been bailed out, with talk in the media of HSBC being a high risk element.

 

Added to this is uprising in general costs. Job losses are just going to increase the problems.

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The bigger issue for us based here in the UK is the knock on effect. Most of the banks over here have investments over in the states and with these collapsing it will wipe value off the local banks. B&B has already been bailed out, with talk in the media of HSBC being a high risk element.

 

Added to this is uprising in general costs. Job losses are just going to increase the problems.

 

And when its all over and done and dusted we will have a total of 3 banks to choose from. Not good for anyone it just gets worse and worse.

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The bigger issue for us based here in the UK is the knock on effect. Most of the banks over here have investments over in the states and with these collapsing it will wipe value off the local banks. B&B has already been bailed out, with talk in the media of HSBC being a high risk element.

 

Added to this is uprising in general costs. Job losses are just going to increase the problems.

 

Tell me more about HSBC?? I have my current account with them... and my salary goes in there :blink:

 

EDIT - as a matter of interest, is now a good time to be making debt or having cash? If debt, which bank ;)

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Tell me more about HSBC?? I have my current account with them... and my salary goes in there :blink:

 

EDIT - as a matter of interest, is now a good time to be making debt or having cash? If debt, which bank ;)

 

If you have more than 35k in the bank then its not safe should the bank get into trouble. Should you have that kind of money and are worried by whats happening spread it around a few banks as the goverment will protect savings upto that limit. However make sure the banks are not owned by the same company. Ie halfax is now part of lloyds therefore only 35k is covered.

 

I think im right in that someone correct me if i am wrong. IMO lloyds are the safest bank in our system.

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When America has a cold, the UK coughs... Maybe it's time for this country to build its own economy so it's less vulnerable. See France, Spain, Germany, they're less affected by the US credit crunch bullcrap.

 

I think you will find it is our culture that has a share of blame, we buy houses where's continentals are more likely to rent.

 

The other countries you mention aren't in great shape either btw.

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Oh dear god...

 

The leader of the free world has spoken, George Bush - 'We need to put a big plan together because the problem is big'......

 

TBH I always prefered his "say it how you see it" approach than Blair's "baffle 'em with bullshit and bore them until they forget what your point was" style.

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Tell me more about HSBC?? I have my current account with them... and my salary goes in there :blink:

 

EDIT - as a matter of interest, is now a good time to be making debt or having cash? If debt, which bank ;)

 

I'm with HSBC as well, salary as well :( First wiff of trouble I'm going down and doing a sizeable withdrawl and stashing it!

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If you have more than 35k in the bank then its not safe should the bank get into trouble. Should you have that kind of money and are worried by whats happening spread it around a few banks as the goverment will protect savings upto that limit. However make sure the banks are not owned by the same company. Ie halfax is now part of lloyds therefore only 35k is covered.

 

I think im right in that someone correct me if i am wrong. IMO lloyds are the safest bank in our system.

 

I dont have that much, fortunately;)

 

I'm with HSBC as well, salary as well :( First wiff of trouble I'm going down and doing a sizeable withdrawl and stashing it!

 

Dont blame you... or take a massive personal loan and tell them you are paying them back :p

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