After reports on Thursday afternoon indicated that the government was close to approving Hank Paulson’s $700 billion bailout plan, negotiations broke down this evening.
Time for another scary speech, President Bush. (Hey, maybe that’s what the networks can air tomorrow night instead of the debate that looks like it’s not going to happen.)
WSJ: A Republican revolt stalled urgent efforts to lash together a national economic rescue plan Thursday, a chaotic turnaround on a day that had seemed headed for a success that President Bush, both political parties and their presidential candidates could celebrate at an extraordinary White House meeting.
Weary congressional negotiators worked into the night, joined by Treasury Secretary Henry Paulson in an effort to revive or rework the $700 billion proposal that President Bush said must be quickly approved by Congress to stave off potentially “a long and deep recession.”
They gave up after 10 p.m. EDT, more than an hour after the lone House Republican involved, Rep. Spencer Bachus of Alabama, left the room. Democrats blamed the House Republicans for the apparent stalemate. Those conservatives have complained that the plan would be too costly for taxpayers and would be an unacceptable federal intrusion into private business.
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