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US Congress approves Paulson Plan

04 October 2008 09:27 (UTC +04:00)

263 congressmen voted for the plan initiated by the Treasury Secretary Henry Paulson and 171 were against.
US administration thinks that it is necessary measure to solve the financial crisis in the country. Immediately after the approval of the plan by the House of Representatives US President George Bush has also approved it. However it didnâ€™t stop the recession in the countryâ€™s stock market. Dow Jones fell by 1.5 % and NASDAQ by 1.48% on October 3. The US Congress made two important amendments to the law which increased bank deposit insurance limit from 100 thousand to 250 thousand dollars and added 110 billion of reduction for the individual taxpayers.
Some analysts said financial flow of 700 billion dollars would lead to the negative results such as rapid inflation, irresponsibility in the corporative sector and etc. Undoubtedly it will affect on the world financial system as well.