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Senate Passes Bailout, Presses House

House To Vote Friday

POSTED: 3:30 am PDT October 1, 2008
UPDATED: 2:27 am PDT October 2, 2008

The House is feeling a lot of pressure to act on the Senate-passed bailout bill and, according to a new poll, most of America is watching and wondering where the economy will lead them -- or drag them.

House Pushed |Economy Turmoil | How Did They Vote?

President George W. Bush praised the Senate for approving a financial bailout and called on the House to do the same.

In a statement released following Wednesday night's vote, Bush said he believes members of both parties in the House can support the legislation. He said the American people expect and the economy demands that the House passes the bill.

In the final vote, 40 Democrats, 33 Republicans and independent Sen. Joe Lieberman of Connecticut voted "yes." Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted "no." Sens. John McCain and Barack Obama cast "aye" votes.

Obama used the opportunity before his colleagues and TV cameras to lay out his rationale and explain his economic vision. But McCain didn't speak about the measure from the chamber.

McCain's chief of staff said, the Arizona lawmaker worked hard with his colleagues on the legislation and "didn't see the need to speak on the bill."

The rescue package would allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions.

The legislation has extra tax breaks and other sweeteners for holdouts in the House. Even as the Senate voted, House leaders were hunting for the 12 votes they would need to turn around Monday's defeat.

Critics on the right and left said the rescue plan is a giveaway for Wall Street, and has little obvious direct benefit for ordinary Americans.

Poll: 8 In 10 Worry Economy Will Affect Them Directly

A new poll suggests Americans are worrying whether their jobs, home values, children's futures and retirement plans are at risk because of the financial fallout.

According to an AP-GfK poll eight in 10 people surveyed fear the crisis will affect them directly. But 45 percent of all adults surveyed still opposed the proposed government bailout.

Nearly 40 percent were in favor of the $700 billion package and 16 percent were not sure.

The banks get the most of the blame for the crisis caused by risky mortgages, followed closely in the poll by the federal government for not providing adequate regulation.

About 55 percent of Americans polled said the government should have a role, but only a limited one, when bailing out failing private businesses.

The AP-GfK poll interviewed 1,160 adults nationwide.

Worldwide, Investors Not Impressed So Far

Broader concerns about a global economic slowdown are outweighing any relief in markets worldwide, despite the senate passage of the bailout bill.

Wall Street is reacting cautiously to the Senate's passage of the banking bailout plan. Stock index futures, which give an indication of how trading will proceed when the market opens Thursday, are down moderately after the vote.

Dow Jones industrial average futures are down 48, or 0.44 percent, at 10,839. Investors may be taking a wait-and-see approach until the House votes on the plan on Friday. It was the House's defeat of the plan Monday that sent the Dow plunging 778 points.

Asian stock markets retreated Thursday despite the U.S. Senate's passage of the bailout package.

Analysts said that even if the package is approved by the House on Friday, investors are skeptical about the bailout's ultimate impact on a faltering global economy.

Japan's benchmark Nikkei 225 stock average lost 2 percent, while Hong Kong's Hang Seng index slipped 1.2 percent.

Benchmarks in Australia, South Korea, Singapore and Taiwan were also in negative territory.

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