Thursday, October 02, 2008

House Could Pass New Stabilization Bill

Daily Real Estate News October 2, 2008House Could Pass New Stabilization Bill
The Senate on Wednesday night approved a plan to support the U.S. financial system and the House is expected to take a second vote on the measure today.

The bill that passed the Senate calls for spending up to $700 billion to buy bad assets from faltering financial institutions. But also it would extend an array of tax breaks worth $108 billion to businesses and families and temporarily increase the limit on federal insurance for bank deposits to $250,000 from $100,000.

Other sweeteners include: energy-related provisions, business tax breaks, a one-year fix of the alternative minimum tax and tax relief for victims of recent disasters. Supporters hope these changes will curry favor in the House, and for some, it appears to be working.

Rep. John Shadegg (R-Ariz.), an influential conservative, said the new bill was "materially better" than the one that failed in the House.

"Much as I would like to see much more dramatic changes, there comes a point in time where we've got to send the signal to the U.S. markets, U.S. consumers and world markets that we're dealing with this," Shadegg said. "I'm inclined to hold my nose and vote yes."

Source: The Washington Post, Lori Montgomery and Shailagh Murray (10/02/2008)

More Links: