The Fragility Of Stability (BAC, MER, LEHMQ)

October 07, 2008 | By Derek Simon A somber President Bush addressed the nation on Sept. 24, warning of a "long and painful recession" if Congress failed to pass the $700 billion bailout, called the Emergency Economic Stabilization Act of 2008, for flailing financial firms proposed by Treasury Secretary Henry Paulson. Congress listened. After initially rejecting Paulson's plan, the House of Representatives did an about-face Oct. 3, passing the measure by a 263-171 margin - possibly because it was attached to a bill ordering the insurance industry to provide greater mental health coverage, something many members of Congress would likely benefit from. "We have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country," Bush said shortly after the House vote. "We have shown... [read full story]