By Reenita Malhotra •
September 22, 2008
In view of the current Wall Street crisis, America’s credibility as a bastion of free markets has come under the radar. The Fed’s recent bailout of AIG, Fannie and Freddie are perceived by many as a free market detour.
The government’s latest bailout news involves a plan to make the biggest intervention in the financial markets since the 1930s. Central to this plan would be a mechanism to bad assets off the balance sheets of financial companies or instead perhaps [...]
By Chris Milton •
September 19, 2008
A few details are starting to emerge about the proposed “bail out plan” of the US Government. While legislators wrestle with the finer details, here are a few figures to juggle with over the weekend.
So far, $200bn has been spent saving Fannie Mae and Freddie Mac with another $300bn to prop up the Federal Housing Administration.
On top of that, there’s with an additional $69bn to buy up the companies’ discount notes, $29bn to keep Bear Sterns alive and $85bn to keep AIG going. That’s another $183bn, taking the running total to $683bn.
