Tokyo - As the world is dragged into a financial crisis ignited by the US subprime loan problem, economists are reminded of the banking crisis that hit Japan, beginning in the late 1980s, triggered by the burst of the country's real estate bubble.

But analysts in Japan remain optimistic about the US situation, saying that the US may not have to repeat Japan's suffering if it acts swiftly and appropriately.

The United States is passing through a similar period as Japan did 20 years ago, they said. Back then, Japan's asset-inflated economy collapsed, balance sheets turned unstable, and it became difficult for the financial system to recover without public funding.

Washington - The US Senate approved a 700-billion-dollar financial rescue package Wednesday night that members said was essential to keep the world's largest economy from near-total collapse.

Senate leaders hoped the 74-25 vote would send a strong message to the lower House of Representatives, which rejected an earlier version of the bail-out plan on Monday and sent US stocks into a free-fall.

"I'm very very happy with this vote tonight," said Majority Leader Harry Reid, the top Democrat in the Senate.

Frankfurt - Central banks pumped more dollars into the banking market Wednesday, and the European Central Bank (ECB) said it would supply as much liquidity as was needed to stop the financial crisis.

As part of the central banks' joint infusion of dollars, which began earlier in Japan, the ECB stepped up its offer of overnight money from 30 billion dollars on Tuesday to 50 billion dollars Wednesday.

The British and Swiss central banks also dumped dollars into markets to relieve strains. Commercial banks have been reluctant to lend to one another money in the crisis.

Washington - The Senate was to vote Wednesday evening on a new version of the 700-billion-dollar financial rescue plan as politicians warned that the US economy might not survive another failure.

Democrats who control the Senate and minority Republicans hammered out a new deal, increasing guarantees on bank savings and adding tax provisions, after the original bail-out plan was surprisingly defeated in the lower House of Representatives on Monday.

"If the financial bill fails in Congress yet again, the present crisis will turn into a disaster," warned Republican presidential candidate and Arizona Senator John McCain.

Mexico City - Mexican multi-billionaire Carlos Slim thinks Latin America "is going to become important for the economy of the United States," in light of the current economic and financial crisis in the affluent neighbour to the north.

Slim - ranked by Forbes magazine in March as the world's second- richest man, worth an estimated 60 billion dollars behind investor Warren Buffett - addressed representatives of foreign media late Tuesday in Mexico City.

He noted that Latin America as a region has 550 million consumers, so it can be "part of the solution" for the United States.

Strasbourg - Despite assurances by European leaders that their finance systems were stable, Europe may still need a massive rescue plan similar to the 700-billion dollar measure being voted on by the US Congress, OECD head Angel Gurria said Wednesday.

Speaking as he presented the annual report to the Parliamentary Assembly of the Council of Europe on the outlook for the world economy, Gurria said, "We have already seen the first troubled European banks being rescued in the United Kingdom, Belgium, the Netherlands and Germany.