Changes

In late September the crisis focused on liquidity—financial companies owned hundreds of billions of dollars of "toxic" real estate assets, mostly based on U.S. [[Fannie Mae]]-backed [[mortgage]]s; they could not sell the toxic securities because no one knew how much they were worth, and large scale loans between major institutions stopped flowing as the system lost liquidity and froze up. A $800 billion rescue plan became law in the U.S. October 3. Meanwhile, Europe's sovereign debt crisis continued to deteriorate, as trillions of dollars in losses accumulated there and in many other countries.  International agencies such as the International Monetary Fund are giving guidance for medium-sized countries, like Pakistan and Ukraine.  In the panic, people around the world sent their money to the U.S. and Japan because the banks there are more tightly regulated and considered safer than their own banks.  The price of oil, which reached $145 a barrel in the summer, plunged to under $50. That plunge eased pump prices, helped commuters, and the airline industry.

In late September the crisis focused on liquidity—financial companies owned hundreds of billions of dollars of "toxic" real estate assets, mostly based on U.S. [[Fannie Mae]]-backed [[mortgage]]s; they could not sell the toxic securities because no one knew how much they were worth, and large scale loans between major institutions stopped flowing as the system lost liquidity and froze up. A $800 billion rescue plan became law in the U.S. October 3. Meanwhile, Europe's sovereign debt crisis continued to deteriorate, as trillions of dollars in losses accumulated there and in many other countries.  International agencies such as the International Monetary Fund are giving guidance for medium-sized countries, like Pakistan and Ukraine.  In the panic, people around the world sent their money to the U.S. and Japan because the banks there are more tightly regulated and considered safer than their own banks.  The price of oil, which reached $145 a barrel in the summer, plunged to under $50. That plunge eased pump prices, helped commuters, and the airline industry.

[[Image:BRIDGE.JPG|thumb|400px|Tom Toles cartoon lampoons Federal bailout efforts as a badly designed [[bridge to nowhere]], Dec. 1, 2008]]

[[Image:BRIDGE.JPG|thumb|400px|Tom Toles cartoon lampoons Federal bailout efforts as a badly designed [[bridge to nowhere]], Dec. 1, 2008]]

Both parties have expressed anger at the crisis, and have promised extensive new regulations of the financial industry. The Republicans opposed additional bailout aid to General Motors, which was on the verge of bankruptcy.<ref>Treasury Secretary Paulson told Congress on Nov. 18 that the Bush administration remains "firmly opposed" to using any of the $700 billion financial bailout fund to keep afloat auto manufacturers, "no matter how badly they need the help." [http://www.foxnews.com/politics/2008/11/18/paulson-rejects-bailout-money-automakers-senate-considers-legislation/ Fox news report]</ref> Democratic Congressional leaders and President [[Barack Obama]] had the [[United States Treasury]] take control of General Motors while paying existing shareholders 22 cents on the dollar for their investment and claims, and not demanding any meaningful concessions from the [[labor union]]s to bring wages more in line with a competitive world standard.

Both parties have expressed anger at the crisis, and have promised extensive new regulations of the financial industry. The Republicans opposed additional bailout aid to General Motors, which was on the verge of bankruptcy.<ref>Treasury Secretary Paulson told Congress on Nov. 18 that the Bush administration remains "firmly opposed" to using any of the $700 billion financial bailout fund to keep afloat auto manufacturers, "no matter how badly they need the help." [https://www.foxnews.com/politics/2008/11/18/paulson-rejects-bailout-money-automakers-senate-considers-legislation/ Fox news report]</ref> Democratic Congressional leaders and President [[Barack Obama]] had the [[United States Treasury]] take control of General Motors while paying existing shareholders 22 cents on the dollar for their investment and claims, and not demanding any meaningful concessions from the [[labor union]]s to bring wages more in line with a competitive world standard.

The Bush administration undertook a program in which it took control of several of the largest financial institutions and [[government sponsored entities]] ([[Fannie Mae]], [[Freddie Mac]], and AIG insurance) at the heart of the crisis, forced mergers of others, purchased $125 billion of ownership in the 9 largest banks in the U.S., and provided relief to the largest bank, Citigroup.

The Bush administration undertook a program in which it took control of several of the largest financial institutions and [[government sponsored entities]] ([[Fannie Mae]], [[Freddie Mac]], and AIG insurance) at the heart of the crisis, forced mergers of others, purchased $125 billion of ownership in the 9 largest banks in the U.S., and provided relief to the largest bank, Citigroup.

:America is a debtor nation, we spend more than we save. The dollars value has plummeted against world currencies. Gold prices remain at record levels.The money that we don't have, but spend, will be a debt that future generations will have to worry about. This has brought rise to the term 'Generational Theft' in describing Obama policies.

:America is a debtor nation, we spend more than we save. The dollars value has plummeted against world currencies. Gold prices remain at record levels.The money that we don't have, but spend, will be a debt that future generations will have to worry about. This has brought rise to the term 'Generational Theft' in describing Obama policies.

:"It's time to terminate the TARP program," Rep. Jeb Hensarling, R-Texas, told reporters on Monday. "TARP is increasingly not being a vehicle for economic stability and taxpayer protection but is evolving into 700 billion dollar revolving slush fund that the administration can use to advance economic, social and political agenda items far and apart from what Tarp was ever designed to do." <ref>[http://www.foxnews.com/politics/2009/06/08/house-republican-moves-terminate-tarp/ House Republican Moves to 'Terminate the TARP'] Fox News,  June 08, 2009</ref>

:"It's time to terminate the TARP program," Rep. Jeb Hensarling, R-Texas, told reporters on Monday. "TARP is increasingly not being a vehicle for economic stability and taxpayer protection but is evolving into 700 billion dollar revolving slush fund that the administration can use to advance economic, social and political agenda items far and apart from what Tarp was ever designed to do." <ref>[https://www.foxnews.com/politics/2009/06/08/house-republican-moves-terminate-tarp/ House Republican Moves to 'Terminate the TARP'] Fox News,  June 08, 2009</ref>

In the view of 51 mostly conservative economists polled by the ''Wall Street Journal'' in July 2009, the Obama administration's performance is problematic. President Obama and Treasury Secretary Geithner both got an average grade of 70 out of 100 for their handling of the financial crisis, but those grades varied widely. Former President Bush and ex-Treasury chief Paulson got average grades of 50 and 60, respectively, when economists were asked how they handled the crisis while in office. By contrast, Fed chairman Bernanke scores much better, with an average grade of 85; in addition 93% of respondents said he should be reappointed by Obama when Bernanke's term expires early next year.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''Wall Street Journal'' July 10, 2009]</ref>

In the view of 51 mostly conservative economists polled by the ''Wall Street Journal'' in July 2009, the Obama administration's performance is problematic. President Obama and Treasury Secretary Geithner both got an average grade of 70 out of 100 for their handling of the financial crisis, but those grades varied widely. Former President Bush and ex-Treasury chief Paulson got average grades of 50 and 60, respectively, when economists were asked how they handled the crisis while in office. By contrast, Fed chairman Bernanke scores much better, with an average grade of 85; in addition 93% of respondents said he should be reappointed by Obama when Bernanke's term expires early next year.<ref>Phil Izzo, "Few Economists Favor More Stimulus," [http://online.wsj.com/article/SB124708099206913393.html ''Wall Street Journal'' July 10, 2009]</ref>