Changes

===Bailout crisis worsens===

===Bailout crisis worsens===

After spending over a trillion dollars in cash and guarantees, the bailout of the financial system by March 2009 seems to have failed to help economic recovery. Obama started to decline in the polls, as independents and Republicans became increasingly critical.  A firestorm of outrage swept the nation in March when it was learned that AIG insurance company, now 80% government owned, was paying $165 million in bonuses to the traders that had caused $60 billion in losses. Geithner was appointed to the Treasury largely on the basis of his work at the New York Fed, where his most important action was to design the bailout of AIG. Under Geithner's leadership it received $170 billion from the government.

After spending over a trillion dollars in cash and guarantees, the bailout of the financial system by March 2009 seems to have failed to help economic recovery. Obama started to decline in the polls, as independents and Republicans became increasingly critical.  A firestorm of outrage swept the nation in March when it was learned that AIG insurance company, now 80% government owned, was paying $165 million in bonuses to the traders that had caused $60 billion in losses. Geithner was appointed to the Treasury largely on the basis of his work at the New York Fed, where his most important action was to design the bailout of AIG. Under Geithner's leadership it received $170 billion from the government.

 

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 very negative, and Geithner lost more of his credibility as a problem solver.  Geithner 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.

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 very negative, and Geithner lost more of his credibility as a problem solver.  Geithner 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.