WASHINGTON, Sept. 20 (Xinhua) -- The Bush administration is planning to buy 700 billion dollars of bad debt from financial institutions in efforts to deal with the financial crisis.
U.S. President George W. Bush makes a statement on the economy from the White House in Washington Sept. 18, 2008.(Xinhua/Reuters Photo)
The plan, part of the government's largest financial
bailout since the Great Depression, would give the administration broad power to
buy the bad debt of any U.S. financial institutions for the next two years,
according to Saturday's news reports.
It would also raise the statutory limit on the
national debt from 10.6 trillion dollars to 11.3 trillion dollars in order to
make room for the massive rescue.
The administration is working with Congress to
quickly pass a financial bailout bill, U.S. President George W. Bush told
reporters Saturday at the White House after meeting with his Colombian
counterpart Alvaro Uribe on a free-trade agreement.
Bush said he decided to act boldly once he realized
how severe the problems were.
He also noted that it is essential that the bailout
plan be strong enough to address the problems.
U.S. Treasury Secretary Henry Paulson
speaks at a news conference on Comprehensive Approach to Market
Developments at the Treasury Department in Washington, September 19, 2008.
U.S. Treasury Secretary Henry Paulson said Friday
that he planned to work through the weekend with congressional leaders to reach
agreement on a bailout plan that would address the root problems of the
financial crisis gripping the country -- bad debt on financial institutions'
"As illiquid mortgage assets block the system, the
clogging of our financial markets has the potential to have significant effects
on our financial system and our economy," Paulson told reporters.