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Critical financial cleanup missing

hypocritexposer

Well-known member
Critical financial cleanup missing
Patrice Hill (Contact)
Monday, February 16, 2009

In this Nov. 20, 2008 file photo, a sign stands outside new home for sale in southeast Denver. New data this week showed that Americans are saving more than they have in months, and while that's bad news for retailers, it could be good news for the crippled housing market. Associated Press.

Wall Street markets have been among the biggest cheerleaders for President Obama's economic-stimulus bill, but disappointment is setting in that the White House, while vigorously pushing for a "sugar spoonful" of stimulus, is not at the same time administering the much-needed "medicine" of quickly cleaning up the financial system.

Efforts on both of those fronts are needed to spark an economic recovery and, of the two, economists consider the banking cleanup to be the more important for the economy in the long run.

But while enactment of a massive $787 billion stimulus plan is nearing completion, thanks to Mr. Obama's strenuous efforts to promote it, the Treasury has presented only the outlines of a critical bank cleanup plan that is needed to unclog the financial system of souring loan assets and get credit flowing to consumers and businesses again. Disappointment with the administration's unfinished plan contributed to a sell-off in the stock market last week that at one point drove the Dow Jones Industrial Average close to a five-year low of about 7,500.

http://www.washingtontimes.com/news/2009/feb/16/critical-financial-cleanup-missing/
 
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