The $700-billion-dollar plan
A proposal for a plan to buy up distressed assets from private firms around the world was sent to Capitol Hill.
There are two major obstacles to this bail out plan -- the issues of accountability and executive compensation.
"The Takeaway" talks to Peter Morici, Professor of International Business at the University of Maryland, and Senior Fellow at the Economic Strategy Institute.
Morici says of the plan: "Essentially there has to be two provisions ... a pay-to-play provision ... there has to be a reigning in of executive compensation and an end to the incentive structure we have on Wall Street ... the second thing is that banks, in order to benefit from this largess, must re-enter the securitization of loans. That's why credit markets have seized up -- around the country people cannot get conventional financing for mortgages because regional banks depend on these large New York City banks to securitize their loans ... right now the large city banks have abandoned that."
"The Takeaway" is PRI's new national morning news program, delivering the news and analysis you need to catch up, start your day, and prepare for what’s ahead. The show is a co-production of WNYC and PRI, in editorial collaboration with the BBC, The New York Times Radio, and WGBH.
More at thetakeaway.org