The United States senate passed a modified version of the $700 billion bailout package with modifications that are expected to solidify support in the house for an upcoming vote. The modifications include:
*Temporarily raising the FDIC insurance cap to $250,000 from $100,000.
*Extends a number of renewable energy tax breaks for individuals and businesses, with incentives for purchasing solar panels.
*Research and development credit for businesses
*Credit that allows individuals to deduct state and local sales taxes on federal returns.
*Relief for another year from the Alternative Minimum Tax.
The house voted down the first bill by a narrow margin. The stock markets had their largest point drop in history, but they rebounded in the following days. It's a tough call if the bailout will change much - some are very adamant for it and others are just as adamant against it.
It should be an interesting vote nonetheless, and no matter which way it goes we will see the results soon in the market. The question will be what kind of results those will be.