“It’s just going to be a cushion,” John Thain the CEO of Merrill Lynch, whose investment firm recently merged with Bank of America, said about the “bailout” cash BOA will gain from the $125 billion being shipped out to nine major financial institutions this week.
The Bush administation drew up a $700 billion “welfare” package for Wall Street, which Congress quickly passed. But there is no sign of relief for consumers struggling amid the credit crunch. Home and job losses continue to rise at an alarming rate, while banks such as Bank of America, Citigroup Inc. and JPMorgan Chase eagerly wait on their slice of the taxpayers’ pie.
The U.S. 2008 FY ended on September 30, reflecting an increase in U.S. debt by $1 trillion and a national debt of $443 billion. Pres. Bush addressed the country’s anxiety about the effects that the economic downturn has taken on their wallets. He called on Congress to pass legislation that will help reduce energy and food costs, and keep people in their homes. Critics were quick to respond, citing the president’s countless appeals to the country about the economic crisis is mere rhetoric.
According to the Labor Department, more than 80% of states reported a total of 160,000 jobs vanishing in September. And foreclosure filings, default notices, auction sale notices and bank reposessions hit 300,000 last month alone.