In his first televised speech before Congress, President Obama asserted that prosperity will return once the government restores the flow of credit in the economy. It may come as a surprise to him, but an economy cannot run on consumer loans. Furthermore, credit stopped flowing in the U.S. for a very good reason: there was no more savings left to loan. Government efforts to simply make credit available, without rebuilding productive capacity or increasing savings, are doomed to destroy what’s left of our economy.
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By Ryan J. Donmoyer [more]
Federal regulators are planning to launch a revamped program to inject capital into financial institutions on Wednesday, but insisted that U.S. banks should stay "in private hands" amid growing talk of nationalization.
The Treasury Department and Federal Reserve are expected to announce details this week of new capital assistance measures “designed to avoid nationalization” of banks, including details of a previously announced “stress test” for institutions that likely will require some bigger firms to temporarily raise more capital, an administration official told FOX Business on Sunday. [more]
Feb. 21 (Bloomberg) -- U.S. Senate and House Democrats who steer financial-industry legislation clashed over having the government take over some banks as a way to help lenders that have been hammered by the worst economic slump in 75 years. [more]
I forget how I stumbled onto their website a few months ago, but I did a free trial of their stock analyzing thing online and found it interesting enough to give their software a whirl, until I discovered the price. I don't remember what it was, but I thought it was in the neighbourhood of a few hundred dollars and month and figured it was too rich for my blood. [more]
The gargantuan stimulus bill Congress has rubber-stamped with virtually no Republican support contains tens of billions of the very spending projects that made the legislation a lightning rod for criticism. [more]
Former Federal Reserve Chairman Paul Volcker warned a Senate committee on Wednesday that billions of dollars more will be needed to resolve the credit market crunch behind the deepening economic recession. [more]
WASHINGTON -- The Obama administration will release its much-anticipated plan to rescue the banking sector early next week, a spokeswoman for the Treasury Department said Monday. Fixing banks is considered a crucial first step to ending the severe recession. The Treasury secretary, Timothy Geithner, has been meeting with top bank regulators to work on the details of the plan. Geithner said last week that he does not want to nationalize banks as some commentators have suggested. The price tag of the initiative may be a bitter pill for Congress to swallow. Severe restrictions on executives may be the price for approval of the plans on Capitol Hill. Many economists believe the second half of the $700 billion plan won't be enough to fix the banks. Reports say the administration is considering a two-pronged approach to buy some toxic assets while offering guarantees against future losses on some others. [more]
"The budget should be balanced, the Treasury should be refilled, Public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance."
-- Cicero, 55 BC