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Bush pleads with Congress for $700bn

President George W. Bush was pleading with Congress in front of the American people last night in an attempt to push through Treasury Secretary Henry Paulson’s $700bn rescue plan.

Bush says the plan, funded by taxpayers, is aimed at preserving the American economy and not safeguarding a single business or industry.

He says that the government is the only institution with the patience and resources to buy bad mortgage assets and wait to get value out of them.

He adds that it will be the first step in divorcing America’s economy from the financial whims of Wall Street which are currently hampering the country and its ability to grow.

Bush also warned citizens that the effects of inaction could be a long and painful recession.

Bush says: “More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account.

“The value of your home could plummet. Foreclosures would rise dramatically. More businesses would close their doors, and millions of Americans could lose their jobs.”


Securitisation is the key to recovery

The government is taking a battering from all sides of the mortgage market at the moment but I can’t say I’m surprised. While it could be argued that the temporary increase in the Stamp Duty threshold to £175,000 is a step in the right direction, I think it will do little to kick-start the market.

Mosaic looks for partners

Mosaic Mortgage Club is looking to appoint packager partners to its panel following the withdrawal of c2-financial from the mortgage sector.

CBI predicts 12,000 financial job losses

The Confederation of British Industry is predicting that the financial services sector will suffer at least 12,000 job losses over the next quarter.

'Feeling the Squeeze'

Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]


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