Fed chairman asks Congress to act quickly on bailout

Federal Reserve Chairman Ben Bernanke pushed President Bush's $700 billion bailout plan Wednesday as he urged Congress to take immediate action. According to Bernanke, the nation's economic and financial

News 12 Staff

Sep 24, 2008, 11:37 PM

Updated 5,780 days ago

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Federal Reserve Chairman Ben Bernanke pushed President Bush's $700 billion bailout plan Wednesday as he urged Congress to take immediate action.
According to Bernanke, the nation's economic and financial stability depends on the bailout plan's approval.
"The credit system is like the plumbing, it permeates throughout the entire system and our modern economy cannot grow, cannot create jobs, cannot provide housing without an effectively working credit market," says Bernanke.
Bernanke's request came after news of Berkshire Hathaway's $5 billion investment in Goldman Sachs. Treasury Secretary Henry Paulson also agreed Wednesday to limit the pay packages of Wall Street executives whose companies would benefit from the proposed bailout.
Many lawmakers, however, are hesitant to write a massive blank check to the banking industry and need assurances that taxpayers and the government will be protected.
"The markets want action, we understand that, but if we act so quickly that we create an ineffective solution without adequate safeguards then we risk the plan failing, which would be an even worse outcome for our markets, the economy and for our country," says Sen. Charles Schumer (D-N.Y.).
Long Island residents are equally concerned about the bailout plan. Sue Siesto, of Massapequa, wonders if taxpayers will end up footing the bill for Bush's proposal.
"Where are you supposed to get that money from?" she asks.
Sen. John McCain (R-Az.) suspended his campaign Wednesday, saying attention should be focused on the bailout. McCain called for debates with Sen. Barack Obama (D-Ill.) to be delayed, but Obama maintains the two should move ahead as planned.


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