Despite the urgent appeal of George w

Despite the urgent appeal of George w. Bush for his adoption of emergency Congress yesterday rejected the rescue plan in the financial sector by 228 votes to 205 votes for. In frond of the deputies, mostly Republican, which was a decline in the Dow Jones industrial average of 5.5, the White House immediately called the Secretary of the Treasury, Henry Paulson and Fed Chairman, Ben Bernanke, to study an alternative solution. The House of representatives would meet again for a second vote, the review of the text in the Senate being originally planned tomorrow. Despite initial bipartisan agreement on an improved version, the Wall Street rescue plan struck in the frond of a majority of Republicans (133 votes against 65) while a majority of Democrats (140 against 95) voted in favour of the text.

Presented by George w. Bush as the last chance to avoid a financial crisis spread to the real economy, the plan Paulson bis"reviewed and corrected by representatives of both sides, has attracted many reservations. Despite the support, late, the two candidates to the White House, John McCain and Barack Obama, the draft law on nationalization of "doubtful assets" from financial institutions, renamed the "Emergency Economic Stabilization Act" (emergency economic stabilization plan) remains suspended in a new vote in the House of representatives. Democrats have accused the Republican camp have sabotaged the compromise reached over the weekend, while the Republicans have questioned the "recovery" political text by the Chair of the House of representatives, Nancy Pelosi. Barack Obama said he is convinced that the House will adopt the text in the second instance, despite the reluctance of the Republicans.

Thousands of letters of protest

"Each Member of Congress and every American must keep in mind that a vote for this text is intended to avoid economic damage for you and your community", had yet warned President Bush stressing the positive impact of the plan on the credit market and the stabilization of the real economy. But several elected officials reported thousands of rounds of telephone and letters of protest from their constituencies. "While it represents a clever staging of the $ 700 billion, improves transparency and adds new provisions for the protection of the taxpayer, the outcome of the new plan is always a rescue public financial sector contrary to the system of free market," said Republican Florida Member, Connie Mack in the "New York Times". According to the final text of 110 pages presented to the House, the Secretary for the Treasury should have immediately a first tranche of $ 250 billion to buy mortgages from financial institutions, an additional $ 100 billion component with "written permission" of the President if need be, while a second tranche of $ 350 billion was planned later, subject to the approval of Congress.

Penalize the offending

Despite a number of improvements including to penalize the leaders of the firms concerned, the plan is considered by number of members of Congress as a "lifeline for those responsible for financial crimes." In addition, some analysts, such as the Economist Nouriel Roubini, believe that it does not really meet two major objectives: the urgent need recapitalisation of banks and the alleviation of the debt of households, even after revision of the project in this sense. Despite the reinforcement of us Billionaire Warren Buffett who saw "a way to avoid the financial meltdown in American history", the management of the plan still faces general scepticism of markets. Even if it is not excluded that the text is finally recovered, a priori not before Thursday, the vote of the House of representatives undermines even the image of the Bush administration putting even cantilever two candidates to the White House that were aligned, not without penalty, the adoption of compromise..