The world's biggest-ever financial bailout
CNN on the facts, as of Sunday:
"President Bush asked Congress on Saturday for the authority to spend as much as $700 billion to purchase troubled mortgage assets and contain the financial crisis. The legislative proposal - the centerpiece of what would be the most sweeping economic intervention by the government since the Great Depression - was sent by the White House overnight to lawmakers."
Paul Krugman on the lead up:
"On Sunday, Henry Paulson, the Treasury secretary, tried to draw a line in the sand against further bailouts of failing financial institutions; four days later, faced with a crisis spinning out of control, much of Washington appears to have decided that government isn’t the problem, it’s the solution. The unthinkable — a government buyout of much of the private sector’s bad debt — has become the inevitable."
Alan Koher on Australia's part in swift moving developments today:
"Australia’s stunning ban on all short-selling is a revolution that will likely flow around the world in a series of dominoes from tomorrow. The global hedge fund industry will effectively be shut down overnight. The business of securities lending will also shut down."