Results tagged “creditcrunch”

The $350 billion second half of the federal government bank bailout—aka TARP (Troubled Asset Relief Program)—funding was released by the Senate. According to the Wall Street Jounral, President-elect Barack Obama intends to "spend $50 billion to $100 billion on a 'sweeping' foreclosure-prevention effort" as well as "impose tougher restrictions on banks that receive government aid, including requirements on banks to lend money, increased restrictions on executive compensation and curtailed dividend payments for some firms."

The Dow plummeted 358 points to end at 11,453, after bad news about brokerages and the ever increasing price of oil. Bloomberg News summed it up this way:

U.S. stocks tumbled, sending the Dow Jones Industrial Average to its worst June since the Great Depression, as record oil prices, credit-market writedowns and a slowing economy threatened to extend a yearlong profit slump.

An analyst told USA Today, "Now we've got oil touching $140. We still have a credit crunch. We still have banks trying to deleverage. Consumers aren't getting credit. There's no reason for things to go higher and lots of reasons for them to go down."