Saturday, September 20, 2008

Paulson and Bernanke told the president that the situation was “extraordinarily serious,” according to a senior administration official.

Shock Forced Paulson's Hand

"If we don't do this, we risk an uncertain fate," Mr. Bernanke added. He said that if the problem wasn't corrected, the U.S. economy could enter a deep, multi-year recession akin to Japan's lost decade of the 1990s, or what Sweden endured in the early 1990s when a surge in bad loans plagued the economy and sent unemployment to 12%. One lawmaker asked whether the solution will prevent bank failures. Mr. Paulson said it will stabilize markets. "But we'll still see banks fail in the normal course," he said.

Posted by stevie dee @ 10:51 AM (438 views)
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