Will the latest round of bailout bucks—$800 billion promised Tuesday by the Treasury and the Federal Reserve—finally do the trick?
What trick? A trick to resuscitate credit markets and slow the shrinking of the economy? Or, is Washington, D.C., just needlessly throwing money at a problem too big to fix with taxpayer's cash?
On the pages of the New York Times, Washington Post, and Wall Street Journal this morning, economists and market pundits of all stripes are debating the latest stimulus plans designed to finance consumer loans and push down mortgage rates. According to the NYT's calculation, the latest bailout brings the federal government's tab this year alone to a staggering level.
The feds are now on the hook for "$7.8 trillion in direct and indirect financial obligations"-that's equal to "about half the size of the nation's entire economy and far eclipses the $700 billion that Congress authorized for the Treasury's financial rescue plan," the newspaper writes.
MEANWHILE...Fight continues to save Citibank...
The New York Times, Los Angeles Times, and Wall Street Journal lead with the late-night announcement of a plan to rescue ailing banking giant Citigroup. Under a plan that the NYT describes as "radical" and "complex," the federal government will protect Citigroup from potential losses on a pool of troubled assets worth around $306 billion. On top of that, the Treasury Department will inject $20 billion into the company—in addition to the $25 billion the financial institution has already received from the department's Troubled Asset Relief Program. The LAT highlights that this is "the largest single rescue effort thus far in the current financial crisis."
On the pages of the New York Times, Washington Post, and Wall Street Journal this morning, economists and market pundits of all stripes are debating the latest stimulus plans designed to finance consumer loans and push down mortgage rates. According to the NYT's calculation, the latest bailout brings the federal government's tab this year alone to a staggering level.
The feds are now on the hook for "$7.8 trillion in direct and indirect financial obligations"-that's equal to "about half the size of the nation's entire economy and far eclipses the $700 billion that Congress authorized for the Treasury's financial rescue plan," the newspaper writes.
MEANWHILE...Fight continues to save Citibank...
The New York Times, Los Angeles Times, and Wall Street Journal lead with the late-night announcement of a plan to rescue ailing banking giant Citigroup. Under a plan that the NYT describes as "radical" and "complex," the federal government will protect Citigroup from potential losses on a pool of troubled assets worth around $306 billion. On top of that, the Treasury Department will inject $20 billion into the company—in addition to the $25 billion the financial institution has already received from the department's Troubled Asset Relief Program. The LAT highlights that this is "the largest single rescue effort thus far in the current financial crisis."
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