Wednesday, February 11, 2009

Bank Bailout at $2.5 Trillion: "The Financial Stability Plan"

Treasury Secretary Tim Geithner announced the new bank bailout on Tuesday, February 10. Obama Administration officials have committed to flood the financial system with as much as $2.5 trillion: $350 billion of that coming from the TARP bailout fund and the rest from private investors and the Federal Reserve, making use of its ability to print money.

However, as reported by the NYT, "basic questions about how the various parts of the program would work, especially those involving the unsellable mortgages that banks are holding and preventing home foreclosures, were left for another day."

The Treasury has set up a website that will give details about the plan. The site is so new that as of today, it is actually less sophisticated than anything our host, Blogger, has to offer. But it's under construction. Check it out at FinancialStability.gov.

Some banks are now so wary of the program that they want to return money.

Adding Up the Government’s Total Bailout Tab: Through Feb. 10, the government has made commitments of nearly $8.8 trillion and spent $2 trillion. Click here for an overview, organized by the role the government has assumed in each case.

1 comment:

Anonymous said...

As a potential buyer i would prefer a further price drop instead of taking from government $15000 that others will have to repay through their hither taxes. I rather see some money going to help those who become disparate these days. Not those who 'desperate' to keep or sell a house they can't afford but those who straggle to survive another day. I rather see government spends our money on something we all benefit from - like infrastructure and health care.