Historic Market Bailout Set in Motion

President Cites Urgent Need For Sweeping Intervention

by David Cho and Binyamin Appelbaum
Washington Post Staff Writers
Saturday, September 20, 2008; Page A01

The Bush administration yesterday proposed a historic $500 billion bailout of financial firms that would let the government rather than the cold judgment of the marketplace decide the winners and losers from the crisis that has shaken the U.S. economy for the past year.

The plan, which would be the most sweeping government intervention in the markets since the Great Depression, calls for the Treasury to buy the troubled mortgage securities that have been toppling major financial firms and are at the heart of Wall Street's turmoil.