US authorities announce $2 trillion bailout
The US authorities have this evening announced a $2 trillion bailout of the US banking system. This would appear to be Barack Obama's first major economic package and one which has caught the attention of investors and market analysts. The Senate is also in talks to approve an $800 million stimulus package and while a preliminary agreement has been reached the stimulus package has not yet entered into law.
When you consider the figures being mentioned with regards to the US rescue and stimulus package it is mind-boggling to think that this may not be enough to refloat the US economy. As in UK, the US economy is haemorrhaging jobs on a regular basis with over 3 million lost since the start of 2008. While there are high hopes that the combined banking bailout and stimulus package should stabilise the US economy, it may take some time to sink into the far-reaching areas of the US.
Even though Barack Obama has only been in office for a short bit of time he has most certainly hit the ground running and many in the US are very impressed with him so far. Whether he has the nerve and ability to follow these packages all the way through to ensure the US economy does recover remains to be seen.
Share this..
Related stories
UK interest rates set to fall by half percent
The UK economy is set to receive a boost later today with speculation rife that the Bank of England will introduce a 1/2% base rate cut to try and kickstart the economy. There have been various rumours and counter rumours over the last few days with regards to the direction of base rates but it now appears as though the MPC committee have decided to go with a middle-of-the-road approach leaving fu...
Read MoreAre we approaching the darkest hours before the dawn?
Over the last few weeks we have seen comments regarding the UK economy issued by various parties and various experts, each of which seems to have a different understanding and different appreciation of the current environment. Many believe the UK economy has turned a corner and is on the way to recovery while others believe it is stagnating and set for a fall in the short to medium term.
Where can public sector spending be reduced?
Despite the fact that Lord Mandelson and Gordon Brown are unwilling to use the term "cuts" in relation to public sector spending there is no doubt that there are significant cuts on the way. Indeed, Lord Mandelson has already highlighted a number of areas under his control that could see a reduction in investment which would have a minimal impact on the overall economy.
The four are...
Is the stock market as risky as people suggest?
The last 24 months have seen a rollercoaster ride in the UK, and worldwide, stock market with billions upon billions of pounds lost but many people making significant profits in the short term. While there is no doubt there are short, medium and long-term risks to investing in any stock market in the world, is it sensible to avoid stock market investment?
The truth is that any inves...
MP's Second Home Allowances Come Under Scrutiny
The ongoing drip feed of scandal and intrigue in the area of MPs expenses seems set to move to a new level over the next few weeks with a number of changes expected. However, a new so called scam has been revealed whereby MPs are able to use their second home allowances on one home (usually in London where costs are higher), while declaring the same home as their primary residence for capital gai...
Read More