60 likes | 73 Views
Economic Crisis Money and the Financial System February 11, 2009. Economy Today. On Tuesday, February 10, 2009 Treasury Secretary Tim Geithner outlined the Financial Stability Plan: Deploying our Full Arsenal to Attack the Credit Crisis on All Fronts. http://www.ustreas.gov/.
E N D
Economic Crisis Money and the Financial System February 11, 2009
Economy Today On Tuesday, February 10, 2009 Treasury Secretary Tim Geithner outlined the Financial Stability Plan: Deploying our Full Arsenal to Attack the Credit Crisis on All Fronts. http://www.ustreas.gov/
Market Reaction http://quotes.ino.com/chart/?s=INDEX_DJI
TARP A central question surrounding the Troubled Asset Relief Program (TARP) is whether the U.S. Department of the Treasury’s (Treasury) policy of injecting cash into financial institutions has resulted in a fair deal for taxpayers. The valuation report concludes that Treasury paid substantially more for the assets it purchased under the TARP than their then-current market value. The use of a one-size-fits-all investment Policy… http://cop.senate.gov/documents/cop-020609-report.pdf
Financial System http://research.stlouisfed.org/fred2/series/WRESBAL?cid=32215
Discussion Why did the stock market reacted negatively to Treasury Secretary Geithner’s Finanacial Stability Plan? Why many economists were concerned about the TARP in the first place? Why major banks are holding record levels of reserve with the Federal Reserve banks? http://www.ustreas.gov/