Government bailout plan still a mystery
It's the largest government bailout in U.S. history, and two days after it was introduced to the Americans paying for it, the proposal is still largely a mystery.
Among the unanswered questions: How will the government mop up the bad mortgage debt on banks' books, who will run the process and how much will it cost?
Pessimism surrounded the bailout Monday as the Dow Jones industrial average fell more than 370 points as analysts predicted the $700 billion bailout coupled with the $200 billion committed to take over mortgage giants Fannie Mae and Freddie Mac could cause the government to boost its borrowing.
The Bush administration is asking Congress for $700 billion to buy up troubled assets from financial institutions. Congressional Democrats are proposing to add several limits and requirements. Here's a quick ouline of both plans.
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Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.
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Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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