US political leaders are set to resume emergency talks on a 700 billion dollar financial rescue package this Friday after failed bi-partisan talks with US President George W.
Bush at the White House on Thursday. The proposal would see the government buy bad debts from US banks. The rescue deal had appeared within reach but a number of Republican members of the Congress refused to pass it. They are concerned at the government's unprecedented intrusion into private enterprise. It is feared that without government intervention, more financial institutions will collapse causing a major credit squeeze. European stocks fell sharply in early trading on Friday due to the uncertainty in the US.
(Deutsche Welle)
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