Bailout Fails in the House

The failure of the US House of Representatives to pass the 700 billion dollar bailout bill sent shockwaves through world financial markets. The bailout bill is unpopular with most Americans and most politicians are reluctant to go against the wishes of a majority of their constituents. Forex traders and markets were left in limbo and the prognosis for the US dollar is negative despite a slight rally against the Euro earlier in the week.

The Senate Vote

On Wednesday, October 1^st the US senate will vote on the proposed bailout plan with several modifications. The vote will take place after sundown out of respect of the Jewish holidays of Rosh Hashanah. The bill includes a provision raising the FDIC insurance cap from $100,000 to $250,000. The Federal Deposit Insurance Corporation was created by Franklin D. Roosevelt’

s administration in 1933 after numerous bank failures eroded public confidence in the banking system.

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