Archive for November 7th, 2008

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The government has stepped in with nearly $125 billion to try and stabilize AIG. The nation's banks are tapping even more. Now General Motors wants its own bailout.

When the Treasury Department first unveiled its plan to buy stakes in banks last month, the move was heralded as a potential savior for fast-sinking banks and financial firms.

The government reported more grim news about the economy Friday, saying employers cut 240,000 jobs in October - bringing the year's total job losses to nearly 1.2 million.

Neel Kashkari, the Treasury Department's point man for the bank bailout, said Friday he was encouraged by progress made thus far but acknowledged that more work lay ahead.

Lending rates fell again Friday, but as the cost of borrowing eases, some government data suggest private lending is not expanding.

The dollar fell against the euro Friday after a dismal unemployment report increased the likelihood that the Federal Reserve would cut its key interest rate to 0.5% in order to bolster the economy.

Borrowing by consumers increased in September after a pullback the previous month, according to a government report issued Friday.

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