The cost of bailing out the auto industry and our financial institutions, many of which are major components in exchange traded funds (ETFs), is nearing $3.5 trillion. And that’s just the beginning.
Although Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke do not mention costs in their speeches, the tally is at $3.45 trillion and counting. The major signs down the road are higher interest rates and hyper inflation to offset the spending that is radically going on now, reports Aaron Task for Tech Ticker.
The “Hope for Homeowners” program is having trouble getting lenders to participate, causing a revamp of the program. The government may allow more borrowers to qualify for a $300 billion program designed to let troubled homeowners swap risky loans for more affordable ones, reports Alan Zibel for Associated Press.
Meanwhile, Paulson said the administration will continue to use $250 billion of the program to purchase stock in banks as a way to bolster their balance sheets and encourage them to resume more normal lending.
Dollars will not be spent rescuing troubled assets from banks as originally announced,as the new goal will focus on a program to support financial markets, which supply consumer credit in such areas as credit card debt, auto loans and student loans, reports Martin Crutsinger for Associated Press.