Senate passes rescue bill 74 to 25:markets still fall

12:10 a.m. October 2, 2008

The American Senate has passed the somewhat altered rescue package by a decisive margin of 74 Democrats and Republicans in support of it with only 24 Senators opposed. The new version of the bill which contains provisions for extension of tax benefits to both business and middle income Americans as well as temporarily increasing the limits of Federal deposit insurance coverage of bank accounts to $250,000 now goes to the house for further debate and a second chance of passage. The debate and vote on the bill should occur on Friday.
Thursday   6:00p.m. The stock market in Canada was hit hard today as the TSX fell by 8 % over 800 points down. Shares of big resource companies like Saskatchewan potash were hit hard, it seems because profits were less than expected and nervous traders pulled the plug. In the US the Dow Jones also fell by over 300 points as pessimism still reigns while they await passage of the rescue /bailout package.
The Canadian leaders'   debate this evening in English should be interesting. So far none of the leaders have properly taken on board just how severe the crisis is and how Canada will be affected.

Dion made a start toward this with his five point plan that he announced in yesterday's French language debate but he like the rest of them is still swearing by balanced budgets when it is clear that in a severe downturn Canada will have to stimulate the economy.Deliberate planned deficit spending is thus the needed response.

(10:40p.m.Thursday night)But regrettably during the English language debate which I have been watching not a single party leader when asked directly by   Steve Paiken, the moderator, if they would have deficits in an economic downturn responded positively thereby explaining to the public how they would be able to fight a recession which is highly likely in view of what is happening in the US.Its a sad spectacle of economic ignorance or lack of leadership on the part of all the party leaders as we enter very risky days on the economic front.