After much debate and back-and-forthing, the United States politicians have finally announced that they have agreed to put together a new rescue packaging to rescue their troubled banks. According to George Bush, this should help them put an end to their side of the credit crunch.
The decision is backed by both Republicans and the Democrats. The US Treasury will be spending billions of pounds in buying the bad debts from the banking system.
Bush has been urging the lawmakers to support this decision for a couple of weeks now, even dragging the current presidential candidates in to support him. The bill requires final approval from both Congress houses though and his initial attempt failed.
The intervention will be the largest intervention in the financial markets in history, since the Great Depression of the 1930’s but it seems it may be necessary to avoid years of depression and economic decline.
According to George Bush, the new bill will show the world that the US is serious about saving and restoring their financial markets. In a recent statement, he said:
“This bill provides the necessary tools and funding to help protect our economy against a system-wide breakdown.”
Everything the US does has a huge impact on the UK, and if confidence is restored in their financial markets, it will have great implications for ours too.