To the rocket shot known as “The Big Bang!”
Geithner to Announce Financial-Rescue Plan Feb. 9Will we have liftoff, or will the rocket blow-up on the pad?
By Rebecca Christie and Robert Schmidt
Feb. 5 (Bloomberg) -- U.S. Treasury Secretary Timothy Geithner will in four days unveil the administration’s financial-recovery plan, aiming to shore up the nation’s banks and restart lending to households and businesses.
Geithner will make a speech Feb. 9 in Washington, a Treasury official said. Hours later, President Barack Obama will hold a news conference that will address the stimulus package Democratic leaders predict will win congressional approval.
Officials plan a combination of approaches for their overhaul of the $700 billion Troubled Asset Relief Program. Along with further injections of taxpayer funds into major financial firms, the strategy is likely to include guarantees for illiquid assets on banks’ balance sheets and possibly some form of a so-called bad bank that would purchase toxic investments, people familiar with the matter have said.
“Our agenda is to begin to shape the architecture of a financial recovery plan that’ll help get credit flowing again and help reinforce the recovery and reinvestment plan now working its way through the Congress,” Geithner said before a meeting of the President’s Working Group on Financial Markets.
The group includes Federal Reserve Chairman Ben S. Bernanke and Federal Deposit Insurance Corp. Chairwoman Sheila Bair.
January Job Cuts
Geithner’s announcement next week will come on the heels of indications that economists predict will show the U.S. recession is deepening.
A Labor Department report tomorrow may show the U.S. lost 540,000 jobs in January, according to the median estimate of economists surveyed by Bloomberg News. The unemployment rate may rise to 7.5 percent, a 16-year high.
Please vote “Funny” if you think it will blow up on the pad, or
Please vote “Cool” if you think the markets will do a successful moonshot!