National News for Aug. 30 - Sept. 12

This is not original reporting. All information has been compiled from The Washington Post and CNN. Silver Chips Online posts this news summary to provide readers with a forum for discussion.

Sept. 7: In an attempt to stabilize the volatile financial and housing markets, the federal government seized control of Fannie Mae and Freddie Mac, the two largest financial mortgaging companies in the United States. Secretary of the Treasury Henry Paulson announced the move to restore confidence in the two mortgage giants who together control a majority of the housing loans in the country. The International Monetary Fund estimated that losses from the current financial crisis, partly caused by Fannie Mae and Freddie Mac, could be over $1 trillion.

Sept. 10: A congressional budget analysis announced that the federal budget will face a deficit of $407 billion in the fiscal year ending at the end of this month due to the weak economy and an increase in government spending. This fiscal year's projected deficit will be 3 percent of the gross domestic product, an increase from the 1.2 percent last year. The analysis also predicted that the next president could face a budget shortfall of over $500 billion when he takes office next year.

Gulf Coast
Sept. 1 - 2: The threat of a disaster comparable to Hurricane Katrina prompted evacuations of 1.9 million people from the southern coast of Lousiana, including New Orleans. Hurricane Gustav was predicated to hit Lousiana as a Category 3 or above storm but instead landed on the state coastline as a Category 2 storm. Because the eye of the hurricane missed New Orleans, the city did not see the damage seen after Hurricane Katrina in August 2005.

Saint Paul, MN
Sept. 1 - 4: Republicans held their convention in Saint Paul and formally nominated Senator John McCain (R-Ariz.) as President and Governor Sarah Palin (R-Ala.) as Vice-President. Organizers cancelled political activities on the first day in lieu of Hurricane Gustav and instead held a telethon-style event to raise money for victims. Featured speakers in the convention included former Governor Mitt Romney (R-Mass.), former New York City Mayor Rudy Giuliani, former Governor Mike Huckabee (R-Ark.), Governor Tim Pawlenty (R-Minn.) and Senator Joe Lieberman (I-Conn.).