Tuesday, November 25, 2008
Treasury Doors Wide Open
Looks like the sky is the limit. Throw the doors open and let’s plunder the US Treasury.
More money for Citibank, U.S. brings support, but not clarity, to Citibank
Only a week after Treasury Secretary Henry Paulson Jr. said that the government bailouts had stabilized the most important financial institutions, plunging stock prices forced it to step in again, both to make another direct investment and to guarantee that losses would be contained from $306 billion in possibly toxic assets on Citigroup balance sheet.
The government injected an additional $20 billion into Citigroup, on top of the $25 billion it invested in the bank a few weeks ago.
It also said that it would cover 90 percent of the losses on those $306 billion in securities after Citigroup suffers the first $29 billion of losses.
Oh wait there’s more! Democrats’ Stimulus Plan May Reach $700 Billion
That amount, more than the nation has spent over the past six years in Iraq, would rival the sum Congress committed last month to rescuing the country’s financial system. It would also be one of the biggest public spending programs aimed at jolting the economy since President Franklin D. Roosevelt’s New Deal.
Obama seems to think the economy needs a jolt. Where will it end?
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