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Bush: US lawmakers 'must listen' vote yes
By CHARLES BABINGTON and JULIE HIRSCHFELD DAVIS
Associated Press
2008-10-03 12:14 AM
President George W. Bush said Thursday "a lot of people are watching" to see if Congress will enact the $700 billion U.S. financial rescue plan that he called the best chance to restore calm to the financial industry.

As both Democratic and Republican party leaders in the House of Representatives worked the offices and halls of congressional office buildings to find enough votes for passage in a floor showdown scheduled for Friday, Bush spoke with more urgency than previously as he lobbied furiously for the measure.

Bush, speaking to reporters in connection with a White House meeting on the problem, said increasingly tight credit is not only stopping small business expansion, but alkso in some respects is threatening the very ability of small businesses to exist. He said lawmakers "must listen" to those arguing for passage of the bill, derided by many in Congress and within the general American public as a handout to a risk-taking Wall Street.

The Senate resuscitated the measure on a 74-25 vote late Wednesday, sending it to the House, where it was rejected on a 228-205 vote Monday. In doinh so, senators added billions of dollars worth of tax cuts and other sweeteners aimed at luring the dozen or so votes necessary to get the bill to the White House for Bush's signature.

On another front, Sheila Bair, chairman of the Federal Deposit Insurance Corporation, urged people to remain calm.

"I think overall the banking system remains very sound so that's why I think it's so important for everybody to keep their head," commission Chairman Sheila Bair said on C-SPAN television. "What I don't want is to see otherwise healthy institutions start to get into trouble just because of liquidity pressure ... Wall Street should be taking their cue from Main Street right now. Main Street deposits are staying there."

But the drumbeat of bad news rattled on. A government report said that orders to U.S. factories plunged by the largest amount in nearly two years as the credit strains smashed manufacturers with hurricane-like force.

Stocks declined on Wall Street early Thursday after the number of people seeking unemployment benefits rose last week to a seven-year high. The Dow Jones industrials fell by about 135 points, their fourth straight triple-digit move.

Bush said the issue is affecting employees and families across U.S. and that lawmakers "must listen" so confidence can be restored in markets and financial institutions.

Financial markets around the world were also waiting the measure's approval, hoping it would inject confidence and prevent a global economic slowdown.

The bailout package was never in danger in the Senate. Lawmakers there played catalysts for the House instead, adding tax provisions popular with the left and right in a bid that House leaders hope _ but cannot guarantee _ will persuade enough of the House rank-and-file to switch from "nay" to "aye" on a highly contentious bill a month before Election Day.

They were especially targeting the 133 House Republicans who voted against the package.

Rep. David Dreier, a Republican, said Thursday he will vote for the bill, as he did Monday, despite some misgivings.

"I will tell you, the American people are angry and frustrated," he said on ABC television's "Good Morning America," saying he's been hearing messages like "the woman who said she was concerned about getting access to a student loan for her daughter."

Rep. Marcy Kaptur, a Democrat, said on the same program that she plans to vote no.

"I will not support this legislation because it's the wrong medicine," she said. Kaptur argued that the problem should be solved by the market itself, not through governmental intervention.

After the Senate vote, Majority Leader Harry Reid, a Democrat, said, "We've sent a clear message to Americans all over that we will not let this economy fail. This is not a piece of legislation for lower Manhattan. This is legislation for all America."

The rescue package would let the government spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and prevent a serious recession.

To some degree, at least, House Republican opposition appeared to be easing as the Senate added $100 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance.

House Republicans also welcomed a decision Tuesday by the Securities and Exchange Commission to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market.

There were worries, though, that the tax breaks might cause some conservative-leaning Democrats who voted for the rescue Monday to abandon it because the revised version would swell the federal deficit.

"I'm concerned about that," said Rep. Steny Hoyer, the Democratic leader.

The Senate vote lacked the drama of Monday's House vote, but it had its celebrity moments. Democratic presidential nominee Barack Obama and his Republican rival, John McCain, came off the campaign trail to vote for the package, thrilling tourists who glimpsed them in the Capitol building's corridors and drawing hordes of reporters and photographers.

___

AP White House Correspondent Terence Hunt contributed to this story.

 
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