WASHINGTON (CNN) – Partnerships with the private sector - aimed at restoring the flow of credit to families and businesses– will be a key feature of an overhaul of the $700 billion financial bailout to be announced by Treasury Secretary Tim Geithner on Tuesday morning, according to a senior White House official.
The public-private par are expected to buy troubled assets that now clog banks' balance sheets and to provide incentives so banks will start lending again, the official said.
The plan will continue to rely heavily on companies injecting capital into banks, but it will require more from those companies, such as caps on executive compensation. The government also will boost monitoring to make sure those banks use the money to increase lending, the official said. The bailout, launched by the Bush administration, has come under fire for its lack of transparency.
The plan also will commit up to $100 billion of the program's remaining $350 billion to stem the tide of foreclosures, without seeking more money from Congress at this time, the official added.
The official also said the plan will significantly expand a Federal Reserve program aimed at unclogging lending to consumers and small businesses by widening the program to cover other types of loans, such as those for commercial real estate.
Any one with any common since would have to agree that the Obama administration's $800 billion-plus economic stimulus effort will lead to what one called a "financial disaster."Huge debt is what got us here,more huge debt is going to make it worse.
"Everybody on the street in America understands that," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee. "This is not the right road to go. We'll pay dearly and we don't have another "fix"left when this doesn't work.
I want to raise money for the unemployed by having a million unemployed, man,woman, and child march to Rush Limbaughs Castle in south Florida.Maybe the mighty right wing Messiah will hire them.
This is a test! If this comment is actually posted on Liberal CNN I will have a heart attack!
Obama must read these blogs as part of his daily self-affirmation exercises. You people are completely dillusional! He, along with the majority of our Democratic Congress and Senate are hell bent on destroying the America we know and love! Say so long to your freedoms! Can you spell S O C I A L I S M????
If that is what it takes to get the economy back on track, do it. It's better
than doing nothing. the Republicans have no faith, President Obama has faith in the God that he serves, who tells us that we can do all things , because he will give the strength, the courage, the knowledge, and the will to accomplish the task at hand. We should all pray for our President, because his success is our sucess. I thnk is is very Un-American to play politics with the lives of your fellow citizens and your country. There is a saying that when you dig a ditch for someone, make sure you dig two. God is a God for all people, when one suffer, we all suffer one way ao another.
I like the idea of monitoring the banks to make sure they start lending the taxpayers money back out to the taxpayers like they are supposed to. If we get closer to socialism in this country it will be the fault of uncontrolled greed on Wall street and in the banks. They will bring it on us because they cannot be trusted to control themselves.
I like the plan so let's get to it