The US and global markets are in shock after the House rejected the proposed Bush 700 billion dollar bail-out package. In an effort to stem the tide in appears the invisible hand of capitalism reigned supreme as majority of voters in the House opted to let money hungry banks and other firms to fail because of their poor policies rather than saving them with artificial market instruments. Here’s what financial sector and news agencies are saying about the event:
- Bush urges new bailout passage.
- Reuters on stunning bailout defeat.
- Paulson comments on defeat. – CTV
- Bush’s next move after defeat. – ABS
- Arnold Kling’s thoughts just before announcement. – Econlog
- Obama says bail out not dead yet. – AFP
- Oil falls another $10 on news. – Yahoo Biz
- Some say nationalize the banks! – Delong
- Should we even let the banks fail? – ABout.com
- Dollar tanks on bailout announcement. – Stuff NZ
- US Treasury statement on the defeat.
Irish government guarantees all bank deposits
All major developed countries protect deposits. the US is looking to increase the level. I believe in Canada the value is 60 000 per bank.
Interesting article about the senate vote at http://www.whybanksfail.com/?p=197