Second chance for a bailout
Senator Obama today told a crowd that this bailout isn’t just for financial bankers. Senator McCain also made clear that this support for the bailout plan was qualified. (What are American and global markets looking for tonight?) Some kind of package that will restore their confidence in the American banking system. There were many flaws in the original proposals, these changes have made it more politically assailable and it should have a fairly direct impact in assuaging some of the fears. (What are some of the sweetners about?) There are two�one is that they’d increase the total level of deposit insurance to $250,000. this is a sensible measure given fears of a bank run. The other pure sweetners are tax credits for alternative energy and tax concessions for small businesses�both of these have nothing to do with the issue at hand. It does make the deal more politically assailable. (What is the central issue that they’re avoiding?) How the banking system is going to continue to function. The basic issue is let’s make sure the banking system is working.
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