Obama’s Economic Adviser: Bigger Bank Bailouts Possible
January 25th, 2009 at 2:10 pm - by admin
Lawrence Summers, President Barack Obama’s top economic adviser said Sunday that they would not be shooting down the possibility of further, even larger, bank bailouts and injections which “may be required to stabilize the U.S. financial system” as losses mount in the wake of a financial crisis.
Summers also said that a number of the tax cuts passed under the Bush administration had to be repealed to assure economic stability - a dubious claim, but one that most moralists do not disagree with. Speaker of the House Nancy Pelosi made similar claims, suggesting that some increased investment to supplement the $700 billion bailout may still be required.
Additionally, Timothy Geithner, Obama’s new Treasury secretary, suggested that an $825 billion dollar additional bailout package being passed through Congress would “help” revive the economy.
More internationally, U.K. business secretary, Ken Clarke, suggested that recovery from what is adding up to be a very serious economic crisis in Britain could take quite a number of years. This, after Prime Minister Gordon Brown spoke of the need to recruit outside assistance to adequately recover Britain’s financial services-dominated economy.
