Released: October 06, 2008

Economy: One hurdle down, many more to go

Source: David J. Lynch, USA Today

The extraordinary $700 billion financial rescue plan that President Bush signed into law Friday will begin the process of healing a battered financial system. But it’s only the start of a journey that grows longer and more difficult with every turn in the road.

“This measure is an important step, but there is a possibility it may not be enough,” says Frederic Mishkin, a former Federal Reserve Board governor.

The Emergency Economic Stabilization Act makes the Treasury Department the buyer of last resort for unwanted assets sullying financial institution balance sheets. The aim is to take the investment debris off the banks’ hands, thereby freeing them to resume normal lending.

Read Full Article: Economy: One hurdle down, many more to go

Keywords

Economy, Wall Street, Bailout