President Bush: asks congress to back bailout

President George Bush pushes congress to back the US government $700 billion bailout, saying that it would protect America’s wider economy from the effects of the sub-prime mortgage crisis and credit crunch.

Early Monday before the US financial markets opened President Bush made a statement from the White House saying he understood the concerns of the taxpayers regarding the huge cost of the bailout in public money.

Talking about the $700 billion bailout Mr Bush said “The ultimate cost to the taxpayer will be far less than that,” he said. “In fact, we expect over time that most, if not all, of the tax dollars we invest will be paid back.”

Despite reservations from both Democratic and Republican leaders Henry Paulson the United States Treasury Secretary pushed through the bailout deal after a week of tense talks on Capitol Hill. This bailout will be the largest financial rescue in American history.

Taxpayer’s money would be used to purchase undervalued mortgage-related assets held by cash-starved financial institutions and banks as the plan will give the US government power to do so, it could end up costing the taxpayer billions.

Read the full article: timesonline