Tuesday, September 23, 2008
All eyes remained on Wall Street today as Congress continued work on a $700 billion economic bailout package.
At about 1 p.m., the Dow stood just below 11,000 at 10,995.22, down 20.47 from Monday's close, or down about 2 percent.
According to Associated Press reports, Federal Reserve Chairman Ben Bernanke bluntly warned Congress today it risks a recession, with higher unemployment and increased home foreclosures, if lawmakers fail to pass the Bush administration's $700 billion plan to bail out the financial industry.
Bernanke told the Senate Banking Committee that inaction could leave ordinary businesses unable to borrow the money they need to expand and hire additional employees, while consumers could find themselves unable to finance big-ticket purchases such as cars and homes.
But he was greeted with skepticism from some senators as the Bush administration lobbied lawmakers in private and public to act quickly. There has been strong opposition from some conservative Republicans and numerous expressions of anger from lawmakers in both parties over an election-year crisis that has pushed the economy toward the brink.
"I understand speed is important, but I'm far more interested in whether or not we get this right," said Sen. Chris Dodd, D-Conn., presiding over a a hearing by the banking panel.
"There is no second act to this. There is no alternative idea out there with resources available if this does not work," he added.