CONGRESS PASSES BAILOUT PACKAGE

Red News Readers,

It would be nice to know exactly which working families Rudd thinks will benefit from the bailout given that working families are those who are most likely to lose their homes and jobs because of the credit crisis?

And Turnbull looks very upset personally by all of this. Has he lost money on his shares? Dear dear!!

Jenny Haines

Rudd, Turnbull welcome Wall Street bailout package

October 4, 2008 - 12:28PM, smh

Prime Minister Kevin Rudd says the US package to bail out Wall Street is a step forward in easing the global financial crisis.

The US House of Representatives passed the $US700 billion package overnight.

"This is a positive step forward in restoring stability to the global banking system," Mr Rudd told reporters in Sydney today.

"But there is still much much more work to be done.

"The stability of the banking system is important to all working families everywhere."
Mr Rudd praised the US administration, Republicans and Democrats, for putting aside their differences and passing the package.

He said he had spoken to both the Republican whip and the Democratic majority leader on the issue.

"Now the challenge is globally consistent financial regulations on transparency, on prudential standards and on corporate governance," Mr Rudd said.

Mr Rudd said the crisis was obviously affecting the global economy, which is why the Australian government decided to bring forward its national building program.

"We take seriously our responsibility to provide leadership in a time of great global financial and economic crisis," he said.

Turnbull welcomes bailout

Federal Opposition Leader Malcolm Turnbull has welcomed the $US700billion bailout package to US Banks, saying it will ease pressure on Australian banks and financial institutions.

"It is an important step to resolving confidence throughout global financial markets," Mr Turnbull told reporters in Sydney today.

"As for Australia, while we do have a much more secure financial system - better regulated, better capitalised, lower level of default - nonetheless we are part of the world and we have been affected by the global crisis.

"We are in the midst of a global economic storm. We will get wet but we will not sink ... (the move will) benefit Australians and ease pressure on banks and other institutions in Australia."

Mr Turnbull warned that the move was no "silver bullet" and there could still be "rocky" times ahead.

"We have to recognise that this crisis has worsened to the extent that no one could have predicted," he said.

"I would not be surprised if we had more bad days on Wall Street, but I would hope that the trend will be to improve.

"Certainly we would be in a much worse position had this bailout bill not been passed."

Mr Turnbull added that the greater level of stability would make the role of every central bank "a lot easier" and hinted that a cut in the reserve bank rate was likely next week.

AAP