The Takeaway

Lessons from Sweden's bank bailout

Tuesday, January 27, 2009

While politicians on Capitol Hill debate how far the government should go in bailing out America's banking system, some economists are taking another look at how Sweden dealt with a similar banking crisis in 1992. Justin Fox, Time Magazine's business and economics columnist joins us from Davos, Switzerland to discuss why Sweden nationalized its banking system in the 1990s and whether a similar effort would work in the United States today.

"Sweden didn't do this whole beautiful bank bailout thing until it had been in a much deeper recession than the U.S. is in for a couple years."
— Time Magazine business and economics columnist Justin Fox on Sweden's nationalization of the banks in the 1990s


The Takeaway

Bank bailouts hint at nationalization

Monday, January 26, 2009

As the bank bailout effort continues, the Obama administration has to address the question of how far to take the rescue plan. Can you say "bank nationalization''? The Takeaway talks to the New York Times' Chief Washington Correspondent David Sanger to give us an outline for the debate and what taxpayers would get.

For a deeper analysis, read David Sanger's article, Nationalization Gets a New, Serious Look, in today's New York Times.

Want to craft your own economic stimulus plan? Start here.


The Takeaway

Out with the old, in with the new at big banks

Friday, January 23, 2009

Two of the nation's largest and most troubled banks are going through high-level personnel changes. Bank of America has taken over Merrill Lynch, and is now pushing out its chairman John Thain. And under pressure from federal regulators Citigroup has brought in a new chairman, Richard D. Parsons, who used to head up Time Warner. New York Times business reporter Louise Story joins John and Adaora to explain the high level staff shifts and what they might mean for the future of the banks.

For more, read Louise Story's article, Thain Resigns Amid Losses at Bank of America in the New York Times.


The Takeaway

The tussle over the TARP

Thursday, January 15, 2009

Senate Republicans who oppose the release of the second $350 billion of the Troubled Asset Relief Program, known as TARP, are facing an uphill battle. It looks as though Congress will approve the release of the money, so what do Senate Republicans need to hear before they feel secure that the money will be handled appropriately? The Takeaway is joined by Republican Senator Jim DeMint of South Carolina.

For more, here is Senate Republican Leader Mitch McConnell discussing the need for more information before the 2nd installment of TARP funds are released.

Comments [1]

The Takeaway

Hot on the trail of the bailout funds

Wednesday, January 14, 2009

Remember way back when Congress handed out $350 billion to bailout the financial services industry? Well people are starting to wonder where that money went. New York Times reporter, Eric Lipton, has been following the billions of dollars that was given out to banks and lending institutions across the nation and finds that a lot of banks are just holding on to their funds. He joins us now, hot on the trail of all that money.

Read Eric Lipton's article, In Michigan, Bank Lends Little of Its Bailout Funds, in today's New York Times


The Takeaway

Didn't we have $350 billion around here somewhere? Oversight wants answers on the bailout funds

Monday, January 12, 2009

Congress could be asked to turn over control of the remaining $350 billion in bailout funds today. The Bush administration is expected to file the request for the rest of the money so the incoming Obama administration can start doling it out almost as soon as the President-elect takes office. The Congressional panel overseeing the Treasury Department’s $700 billion bailout isn't quite ready to approve the release of funds, though. First they would like some answers on how the first $350 billion of the bailout money was spent. Joining The Takeaway is former New Hampshire Senator John Sununu, who is on that Congressional oversight panel.

Comments [2]

The Takeaway

Rattle rattle beep beep: U. S. car industry sales sink

Tuesday, January 06, 2009

The final car sales numbers for 2008 are abysmal, especially for Chrysler whose sales dropped more than 50%. Vehicle sales at the Ford Motor Company fell 32.4 percent and 31.4 percent at General Motors from this time last year. The silver lining for the automakers is that they get to start the year with billions from the government. John Wolkonowicz studies consumer purchase motivation for Global Insight, an economic and financial analysis firm in Lexington, Massachusetts.