Despite Uncle Sam's best efforts, the big money boys still won't loan money to each other at reasonable rates. As a result credit remains locked up and the Treasury checkbook remains open. What's happened to date?
1. Bear Stearns $29 billion
2. Fannie Mae and Freddie Mac up to $200 billion
3. AIG received an injection of $85 billion, followed by another $38 billion
4. Direct liquidity injections for banks $900 billion
5. Purchase of corporate commercial paper, $1.3 trillion qualifies
6. Purchase of toxic assets produced or owned by Wall Street $700 billion
7. Half point interest rate cut, coordinated worldwide
The bill is well over $3 trillion and the Treasury window sits wide open for more. The focus shifted from liquidity to recapitalization. This means new owners, Uncle Sam, private equity underwriters and sovereign wealth funds.
1. Bear Stearns $29 billion
2. Fannie Mae and Freddie Mac up to $200 billion
3. AIG received an injection of $85 billion, followed by another $38 billion
4. Direct liquidity injections for banks $900 billion
5. Purchase of corporate commercial paper, $1.3 trillion qualifies
6. Purchase of toxic assets produced or owned by Wall Street $700 billion
7. Half point interest rate cut, coordinated worldwide
The bill is well over $3 trillion and the Treasury window sits wide open for more. The focus shifted from liquidity to recapitalization. This means new owners, Uncle Sam, private equity underwriters and sovereign wealth funds.
