AJLPP Condemns Capitalist Bailout at the expense of the people

AJLPP Statement
October 3, 2008

AJLPP Condemns Capitalist Bailout at the expense of the people

Los Angeles --The US House of Representatives approved a $700 billion bailout package for US banks, under pressure from all sides as the effort to head off a spreading financial crisis hung in the balance. President Bush happily signed the bill into a law at the White House today. October 3, 2008.

The Alliance-Philippines strongly condemns the bailout saying: “ again the democrats showed that they do not differ from the republicans in protecting the capitalist system who again and again exploit the workers and the people of the United States. They bailed out the banks and not the people who are against the free ride.”

The House approved the financial rescue plan by a vote of 263-171 concluding two weeks of legislative haggling in Congress that had roiled and captivated global markets.

The AJLPP strongly pointed out that the stop gap measure did not solve the capitalist crisis. Instead, as the bill was signed into a law, new signs of spreading crisis appeared.

The House had shocked world markets on Monday by rejecting a previous draft. With elections on Nov. 4, lawmakers from both parties were wary of voter backlash in asking taxpayers to pay for Wall Street's mistakes. The bill would allow the US Treasury to buy toxic debt from US banks, which many economists say is needed to head off the worst financial crisis since the Great Depression.

The Crisis Continues

The AJLPP pointed out that the United States reported its biggest monthly job loss in 5.5 years, more evidence of an approaching recession. Data showed the US services sector holding up.

In California, where the largest Filipino population can be found outside the Philippines Gov. Arnold Schwarzenegger warned the US Treasury the state might need short-term federal loans because it can't raise money in frozen credit markets.

The AJLPP said that the state of California that has made deep cuts at the expense of the people said it was running out of money. France, a member of the Europian Unoin (EU) said the world stood on the "edge of the abyss," and European leaders were divided over their own response to the global crisis.

The collapse in the US housing market and resulted into bad mortgages, have shattered confidence in the financial sector, with banks across the United States and Europe needing support from governments or outside investors this week.

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