- Best Buy cuts profit forecasts
- GM is judged as too big to fail
- Deutsche Bank says that the TARP's $700 billion bailout can't meet the phenomenal demand
- Russia's crime rate has risen as more citizens are carrying cash due to the world's financial crisis
- Macy's loss is smaller than expected
- Global economic confidence remains at rock bottom levels
- Singapore government says they won't bailout Las Vegas' Sands project
- The Fed says regulators are to take action when bank dividends get too high
- Persian Gulf shares decline led by Tamweed
- Crude oil falls to 21 month low, trades below $57/barrel
- American Express converts to a bank holding company and seeks $3.5 billion in bailout funding
- Here's one for environmentalists - the U.S. Supreme Court rejects concerns over whales and allows the Navy to continue use of sonar
Paulson says banks must continue to lend money to help stimulate the economy, or in case no one has told him yet, they need to start lending.
Paulson has identified three areas of uses for the remaining TARP funds. TARP which stands for Troubled Asset Relief Program has yet to use any funds for troubled assets. Now, Paulson is abandoning the plan to buy troubled assets and shift the focus to supporting asset back securitization. The second half of the $700 billion will be spent to 1) reinforce the financial system; 2) support asset backed securities and non-bank credit, i.e. credit card debt, student loans, auto loans; and 3) explore ways to reduce risks of foreclosure.
Paulson is comfortable that $700 billion is enough to get the economy back on track.