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Senate, Treasury attack crisis

WASHINGTON - On a single day filled with staggering sums, the Obama administration, Federal Reserve and Senate attacked the deepening economic crisis Tuesday with actions that could throw as much as $3 trillion more in government and private funds into the fight against frozen credit markets and rising joblessness.

'It's gone deep. It's gotten worse,' President Barack Obama said of the recession at a campaign-style appearance in Ft. Myers, Fla., where unemployment has reached double digits. 'The situation we face could not be more serious.'

If any more emphasis were needed, Wall Street investors sent stocks plunging, objecting that new rescue details from the government were too sparse despite the huge numbers. The Dow Jones industrials dropped 382 points.

The president spoke shortly after Senate passage of an $838 billion emergency economic stimulus bill cleared the way for talks with the House on a final compromise. In a display of urgency, White House chief of staff Rahm Emanuel traveled to the Capitol in mid-afternoon for meetings with Democratic leaders as well as moderate senators whose views - and votes - will be key to any compromise.

Separately, Treasury Secretary Timothy Geithner outlined plans for spending much of the $350 billion in financial bailout money recently cleared by Congress, and the Federal Reserve announced it would commit up to $1 trillion to make loans more widely available to consumers.

Taken together, the events marked at least a political watershed if not an economic turning point - the day the three-week old administration and its congressional allies assumed full control of the struggle against the worst economic crisis since the Great Depression.

The vote was 61-37 in the Senate to pass the stimulus, with moderate Republican Sens. Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania joining Democrats in support.

Even before the vote, Majority Leader Harry Reid and House Speaker Nancy Pelosi met with Obama at the White House to go over the task ahead.

The Democratic leaders have long pledged to have legislation on Obama's desk by mid-month, and Reid told reporters he hopes for at least a first cut at a deal within 24 hours. 'We need to get this done as fast as we can,' he declared.

The political urgency bumped up against other obstacles, though.

The House measure includes roughly $70 billion more spending than the Senate's, but it lacks Senate-approved tax breaks totaling more than $100 billion for new car buyers, home purchasers and upper middle income families.

In a further obstacle, Collins and other Senate moderates - in both parties - signaled they will work to hold the cost of the final bill below $800 billion. That's less than the $820 billion in spending and tax cuts combined in the bill that cleared the House as well as the $838 billion legislation the Senate wrote.