US Senators and Congressmen voice criticism to bailout plan

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Source: CCTV.com | 09-28-2008 12:53

Senators and Congressmen from both sides of the aisle in US politics are voicing their criticism of the planned 700 billion US dollars rescue package for Wall Street. That's despite claims from negotiators that they hope to reach agreement on the deal by the end of the weekend. On Saturday, US President George W. Bush used his weekly radio address to appeal to lawmakers from both parties to agree to a deal on the package.

Peter Defazio, Democratic Congressman for Oregon

Peter Defazio, Democratic Congressman for Oregon said "As Mr Issacs, the former head of the FDIC says, 'having financial institutions sell the loans to the government at inflated prices so that the government can turn around and sell the loans to well healed investors at lower prices, strikes me as a very good deal for everyone but US tax-payers. Surely, we can do better.'"

Jagadeesh Gokhale, Economist of CATO Institute said "Everything is up in the air. My problem with this whole thing is the way it's being described and the aggressiveness with which the program was sold by the administration itself may worsen the problem because if banks come to expect this injection of funds then they will wait for it and continue their current sluggish lending policies."

George W. Bush, US president said "The rescue effort we're negotiating is not aimed at Wall Street -- it is aimed at your street. And there is now widespread agreement on the major principles. We must free up the flow of credit to consumers and businesses by reducing the risk posed by troubled assets. We must ensure that taxpayers are protected, that failed executives do not receive a windfall from your tax dollars, and that there is a bipartisan board to oversee these efforts."

Editor:Xiong Qu