• Normal Congressional activities came to a screeching halt in late September and early October as the legislature turned its attention to deciding what to do about the nation’s financial crisis. A lot of midnight oil was burned by a host of instant money experts. First the House rejected a $700 billion bill, then the Senate worked out a compromise, passed that bill and sent it on to the House, where it was accepted and passed. President Bush quickly signed off. Both the lawmakers and the administration objected to the term “bailout,” preferring to refer to the legislation as a “rescue package” or “an emergency economic stabilization” plan. Details of the legislation have been covered more than adequately by the general media.
Spending watchdogs pondered where the money would come from and where it would go. According to the Congressional Budget Office, the federal budget deficit for the 2008 budget year set a new record as it rose to $438 billion, topping the previous record set by the $413 billion posted in 2004. The deficit is almost certain to grow even higher as the government delves into the financial crisis and digs into the $700 billion Treasury fund to pay off mortgage-related securities and other activities.
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