October 09, 2008 at 10:00 am by Tom Lydon
As markets and exchange traded funds (ETFs) continue another day of see-sawing, the Bush administration says it’s considering an ownership stake in some U.S. banks as another tool to deal with the global credit crisis.
No decision has officially been made, but some supporters say injecting capital into the banks could help their balance sheets, reports Martin Crustinger for the Associated Press. The plan is similar to one announced by Britain yesterday.
All told, the Federal Reserve estimates that it has pumped $800 billion into the financial system. The shocker? That doesn’t even include the bailout money, or the $200 billion that might be spent to help Fannie Mae and Freddie Mac, says David Leonhardt for the New York Times.
The debt clock, our unofficial tally of the federal deficit, has topped out, exceeding $10 trillion for the first time, Phil Izzo for the Wall Street Journal reports. It will soon be upgraded to a new model that goes up to the quadrillions.
Jobless claims fell back from a seven-year high, the Labor Department said today. They’re still at high levels and the numbers are what Wall Street expected, reports Christopher S. Rugaber for the Associated Press.
Meanwhile, wholesale inventories rose 0.8% in August, higher than expectations. Sales fell 1% after dropping 0.8% in July, reports Lisa Lambert for Reuters. As sales plummet and inventories rise, the inventories-to-sales ratio has jumped to 1.10 months, which is how long it would take to sell the goods.
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