Poll: Americans favor a bailout
— -- Nearly eight out of 10 Americans — 78% — say Congress should approve an historic bailout of the nation's financial markets, but most want lawmakers to significantly modify the Bush administration's $700 billion plan, according to a USA TODAY/Gallup Poll taken Wednesday night.
Lawmakers on Thursday reported agreement in principle on the deal, boosting stocks more than 2% in mid-day trading.
Only 11% in the poll say Congress should take no action to ease the current credit crisis, which President Bush has said could lead to a panic. Fifty-six percent of respondents say Congress should pass a plan that's different from the administration's proposal, while 22% want lawmakers to approve a plan similar to Bush proposal to allow the Treasury Department to buy up to $700 billion in distressed assets from financial institutions.
The one-night poll of 1,019 adults came on the night President Bush delivered a prime time TV speech in which he argued that the rescue plan is critical to averting a financial disaster. Results from the one-third of those who responded after the speech mirrored the earlier group.
The plan would allow the Treasury Department to buy troubled mortgage-backed securities and other loans held by financial institutions. The government could later resell the assets, presumably after they've recovered much of their value. The plan is designed to restore market confidence and allow bank capital and credit to flow again, unlocking critical gears of the economy.
In his speech, Bush said that without immediate action, "America could slip into a financial panic." He added, "Our entire economy is in danger."
Many Americans agree the financial meltdown is dire. Forty percent of poll respondents said it's the biggest crisis in their lifetime; 24% agree it's a crisis but say it's not the worst. In turn, 43% say they're following news about the Wall Street turmoil very closely and 37% say they're monitoring developments somewhat closely.
But many Americans also agree with Democrats who are pushing for significant new provisions. Sixty-three percent of respondents say its' "very important" to limit the pay of executives whose firms benefit from the plan. And nearly half of those polled say it's very important to help homeowners who can't pay their mortgages. If lawmakers do nothing, 74% believe the economy would get worse, and more than three-quarters of those who believe that say congressional inaction would lead to a depression or prolonged recession.
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