US $1 trillion bailout is under threat from political skirmishes (The Independent)

[struggle4progress]

By Stephen Foley in New York and Margareta Pagano in London
Sunday, 21 September 2008

... Less than 48 hours after the Treasury Secretary Hank Paulson called together Congressional leaders from both sides of the aisle, Democrats are demanding that additional measures to boost the economy and prop up house prices be bolted on to legislation aimed at bailing out Wall Street ...

Congressional leaders plan to have legislation drawn up early this week, galvanised into action by the panic on Thursday that threatened a modern-day repeat of Depression-era bank runs.

But leading Democrats said a Bill focused on Wall Street would be unacceptable unless accompanied by more help for homeowners. Barney Frank, chairman of the House Financial Services Committee, said the measures should include a second economic stimulus package with funding for infrastructure. A first stimulus package, containing $150bn (around £80bn) of tax rebates, buoyed consumer spending over the summer and kept the US out of recession.

Other Democrats have called for measures to prevent more home foreclosures. The leader of the Senate's Democrat majority, Harry Reid, said: "We must not forget Main Street as we address the crisis on Wall Street." ...

http://www.independent.co.uk/news/business/news/us-1-trillion-bailout-is-under-threat-from-political-skirmishes-936667.html