(Source: Boston Herald)
The recession in the U.S. housing market is expected to be deeper, longer and scarier if lawmakers continue to be deadlocked in their effort to pass a $700 billion bailout of the financial industry.
New data for July out today from the Standard & Poor's/Case- Shiller home price index will likely show more declines nationwide.
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The U.S. Chamber of Commerce, the nation's largest business lobbying group and a vocal bailout proponent, responded quickly after the vote by the House.
"Make no mistake: when the aftermath of congressional inaction becomes clear, Americans will not tolerate those who stood by and let the calamity happen," said the letter. "The chamber will score votes on, or in relation to, this issue in our annual `How They Voted' scorecard."
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Oil prices plunged more than $10 a barrel yesterday as a U.S. financial bailout plan failed to win legislative approval, raising the specter of a prolonged economic downturn that could drastically erode global energy demand.
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Lehman Brothers agreed to sell its investment-management unit to Bain Capital LLC and Hellman & Friedman LLC for $2.15 billion as the New York-based firm liquidates assets in bankruptcy.
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Adding to their woes, mortgage finance giants Fannie Mae and Freddie Mac said a federal grand jury in New York is investigating accounting, disclosure and corporate governance issues.
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The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
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Latin American stocks plunged in intraday trading, with Sao Paulo's Ibovespa stock index leading the losses with a 10.2 percent afternoon drop. Trading was automatically halted for 30 minutes.
- STAFF AND WIRE REPORTS
(c) 2008 Boston Herald. Provided by ProQuest LLC. All rights Reserved.
