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[[Image:Geithner1.jpg|thumb|330px|Critics feared Geithner's vague plans would crash]]

[[Image:Geithner1.jpg|thumb|330px|Critics feared Geithner's vague plans would crash]]

The [[Obama Administration]], taking office on Jan. 20, 2009,  moved to handle the crisis on two fronts.  Working with Democrats in Congress (and three moderate Republican Senators), it passed the "[[American Recovery and Reinvestment Act of 2009]]", calling for $500 billion of new spending and nearly $300 billion in new tax cuts. The new law will begin operations in mid-February, 2009, and supporters hoped it would slow and turn around the nosediving economy.  Conservative critics feared it would be ineffective in the short run and add to the national debt and tax burdens in the long run.

The [[Obama Administration]], taking office on Jan. 20, 2009,  moved to handle the crisis on two fronts.  Working with Democrats in Congress (and three moderate Republican Senators), it passed the "[[American Recovery and Reinvestment Act of 2009]]", calling for $500 billion of new spending and nearly $300 billion in new tax cuts. The new law began operations in mid-February, 2009, and supporters hoped it would slow and turn around the nosediving economy.  Conservative critics feared it would be ineffective in the short run and add to the national debt and tax burdens in the long run. As of late March no results are visible.

With banks on the verge of failure, Treasury Secretary [[Timothy Geithner]] unveiled yet another massive bailous program in mid-February. Trillions would be spent to move toxic assets out of the banks, but few details were provided. The financial community immediately reacted with new fears that the plan was too vague to promise much relief.

With major banks on the verge of failure, Treasury Secretary [[Timothy Geithner]] unveiled yet another massive bailout program in mid-February. Trillions would be spent to move toxic assets out of the banks, but few details were provided. The widespread reaction was vewry negative, and Geithner lost more of his credibility as a problem solver.  Geither finally came back with a plan on March 23 that will not need additional funding or approval by Congress. The Treasury will use $100 billion from the Troubled Asset Relief Program (TARP), as well as new capital from private investors, in order to generate $500 billion in purchasing power to buy toxic loans and assets. The program could potentially expand to $1 trillion over time.

 

The Treasury will use $100 billion from the Troubled Asset Relief Program (TARP), as well as new capital from private investors, in order to generate $500 billion in purchasing power to buy toxic loans and assets. The program could potentially expand to $1 trillion over time, and was announced on March 23.

==See also==

==See also==