Fed Chairman Bernanke says he is aiming to bring down mortgage and consumer rates. To assist in this endeavor he is adding $800 billion more to help home buyers, consumers and small businesses. The spigot is wide open.
Paulson says that market stabilization may take some time to work. Conservatorship is working as planners hoped. Paulson has no time line for seeking the final $350 billion. He says that the financing market is not working as they hoped.
Paulson announced that the $200 billion for the Asset Backed Securities (ABS) is just a starting point and will likely expand from there.
FDIC Chairwoman Bair says that they expect more bank failures. YTD there have been 16 bank failures, 5 times normal. Problem banks have risen 46% and FDIC insurance money has declined.
President-Elect Obama has announced Peter Orszag as the new Director of the Office of Management and Budget and Rob Nabors as the Deputy Director of the OMB.