More economic pessimism from Paul Krugman, whose skeptical views have a growing following: The United States risks losing an entire decade of growth and enduring Japanese-style stagnation if it doesn’t move more aggressively to deal with ailing banks and to stimulate the economy.
Even before she poses her first question to Treasury Secretary Timothy Geithner when he testifies before her panel for the first time today, expect Troubled Asset Relief Program oversight head Elizabeth Warren to come under fire. That’s because conservatives have been gunning for Warren, who was an outspoken advocate for More…
As Washington moves closer to taking over some of the country’s most insolvent banks, it’s interesting to watch congressional Democrats squirm to endorse the idea without attaching to it a label of nationalization.
As the finance industry continues to flail and bank lending remains flat, Bloomberg reports that Sen.Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, is floating the possibility that the government might have to take over the banks — at least for a time. Bloomberg reports:
Not very.
Speaking to reporters today, newly confirmed Treasury Secretary Tim Geithner all but dismissed the idea outright:
We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system.
As the economy continues to sink, the Wall Street Journal today documents an increasingly obvious fact: Most of the big banks that got a total of $148 billion in taxpayer money didn’t use it to make loans. Instead, lending activity at 10 of the 13 banks that received funds More…
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