 |
         
|
CBS followed up with a couple of stories on the Treasury Department's partial nationalization of the financial system. Sharyl Attkisson was on Capitol Hill for Neel Kashkari's testimony at House hearings. Kashkari is the Treasury man in charge of TARP, the Troubled Asset Relief Program--which has now decided not to relieve banks of troubled assets. "Why are taxpayer billions buying stock in big successful banks instead of helping consumers with mortgages and loans?" was how Attkisson paraphrased the questioning. Her colleague Anthony Mason covered criticism of TARP from Chairwoman Sheila Bair of the Federal Deposit Insurance Corporation. She proposes that $22bn be spent to subsidize banks that modify home loans to reduce monthly payments and to insure those modified loans against default. "The Treasury Department disagrees," said Mason. Kashkari argued that Bair's $22bn would constitute "spending" while TARP's $700bn has been designated for "investments."
"Bailout" should be in the plural, insisted CNBC's Michelle Caruso-Cabrera as she gave a tutorial to NBC anchor Brian Williams on the extent of the federal government's intervention in the economy. To TARP, she added the Federal Reserve Board's investment in AIG, the insurance conglomerate; and the nationalization of FannieMae and FreddieMac, the bankrupt home mortgage firms; and federal loan guarantees to the automobile industry--and came up with a total in excess of $1tr. "It is going to have to be paid for somehow," she shrugged, offering a pair of scenarios but curiously ignoring a third. First she suggested "eventually a stronger economy, which means more tax receipts." Next she warned that "often governments try to raise taxes in order to pay for all of this kind of stuff." Yet she ignored the 1970s-style solution: devalue the dollar and run the printing presses to reduce the debt by inflating the currency.
Economic recession can lead to psychological depression, NBC's Robert Bazell warned. Stress about out-of-control finances makes us grow old faster, harming our heart and our blood sugar levels. He recommended exercise and the company of friends "because isolation can be one of the biggest stressors of all."
You must be logged in to this website to leave a comment. Please click here to log in so you can participate in the discussion.
