Bernanke Paulson to work with Congress through the weekend
"WASHINGTON (Reuters) - Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke plan to work through the weekend with Congress on a comprehensive plan to deal with toxic bank assets choking the financial system, a Treasury spokeswoman said on Thursday."
How did we get here? All kinds of finger pointing and blame abound, but it appears to have started with too much money in the market and consumers tried to capitalize on that to buy the American Dream- a home of their own, thus driving the prices on housing sky high. Then mortgage and a lot of other companies started drafting all kinds of impossible instruments which actually made it harder for consumers to pay in the end, resulting in massive defaults.
Add to the mix complex derivative default swaps, http://www.reuters.com/article/newsOne/idUSN1851200120080919 and you have an incendiary situation, which is where we are now.
Meanwhile, businesses separate from banking finance and housing feel some of the crunch from consumers taking major hits, but as a whole they remain ok.
The sky may seem to be falling, but really, its not.
News on the Blue Marble
How did we get here? All kinds of finger pointing and blame abound, but it appears to have started with too much money in the market and consumers tried to capitalize on that to buy the American Dream- a home of their own, thus driving the prices on housing sky high. Then mortgage and a lot of other companies started drafting all kinds of impossible instruments which actually made it harder for consumers to pay in the end, resulting in massive defaults.
Add to the mix complex derivative default swaps, http://www.reuters.com/article/newsOne/idUSN1851200120080919 and you have an incendiary situation, which is where we are now.
Meanwhile, businesses separate from banking finance and housing feel some of the crunch from consumers taking major hits, but as a whole they remain ok.
The sky may seem to be falling, but really, its not.
News on the Blue Marble
posted by matua105 at 8:16 PM
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