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October 13th, 2008
08:44 PM ET

Evening Buzz: Treasury to the Rescue?

Maureen Miller
AC360° Writer

The devil is in the details. I'm sure you've heard that old saying. Tonight, investors are waiting to get details from the Treasury Department on the plan to boost the U.S. economy.

Some specifics on the plan earlier today helped the markets surge on Wall Street. The Dow gained 936 points at the closing bell. It's the biggest one-day closing point gain ever and snaps eight straight days of losses. Big losses.

Tonight on 360°, we'll look at the Treasury's latest measure to boost investor confidence. As part of its authority granted in the $700 billion bailout bill, the Treasury would invest as much as $250 billion dollars in banks, according to a source briefed on the proposal. The plan also calls for the FDIC to back up some bank debt for three years.

Doesn't it seem like we keep hearing of new plans to help ease the credit crisis?

"They are clearly just making it up as they are going along," said Lawrence White, an economics professor at New York University's Stern School of Business. "They don't have a clear and focused strategy," he added.

Do you agree?

And, we'd love to hear your thoughts on the latest person added to our 10 most wanted: Culprits of the Collapse. Be sure to watch 360 tonight to see who is on our list. Some people say this is not the time to point fingers. We disagree.

All that and more tonight starting at 10pm ET.
Hope you can join us!


Filed under: Maureen Miller • The Buzz
soundoff (8 Responses)
  1. Lucy

    Are they making it up as they go along? Duh....They didn't even know the Crash was going to happen. Bush Jr. was saying that the economy was fine until the bottom dropped. I believe they said it took them by surprise. It could be that they knew what was happening but needed time to get their money out of the market first or really thought they could get through the election before the market crashed and burned. I just love the Republican economic policy of Trickle down. The new poor, formerly known as middle class, has renamed it as the Republican economic policy of Trickle away, where your life savings disappears in a New York minute...or a Wall Street morning. The banks do have to be protected, but the Glass Stegall Act of 1933 was repealed by the Republican Graham, Leach, Blilley Act 1999 which allowed banks to investing in high risk investments. If we don't protect the banks then even more bank failures will occur. FDIC will empty out and American taxpayers have to keep bailing out and absorbing Corporate America's losses. The Republican gift that just keeps on giving. I wish you would hurry up and name all the "Culprits of the Collapse. I don't have any money for Christmas, so I thought I could make Christmas gifts by blowing up your culprits of collapse and mount them on a dart board. I think a lot of people would become expert "dart throwers". Sticking it to the people on the dart board like they stuck it to us.

    October 13, 2008 at 10:06 pm |
  2. maria

    I fail to understand how the economy can be fundamentally strong 4 weeks ago then be on the brink of collapse or melt down 3 weeks ago and now back on the road to recovery.Was this a real or virtual downturn?Sounds more like the common cold to me

    October 13, 2008 at 9:58 pm |
  3. Bret Peters

    Finally we see some "coherent" ideas on the allocation of the funds. I am so glad Polson and his appointee has slow down "Fools rush in" and looked at many different ideas on how best to funnel the funds into areas that thaw our credit freeze. Now we need to watch their motivation on which assets they spend the rest on. Make sure it benefits the tax payer, not them or their personal interests. I feel there should be not only a freeze on there personal trading for two years, but also a gag order on reflecting which companies benefit sending stock prices high. This will not only insure there is no conflict of interests, or hidden personal objectives. Both nominees, congress, and the American people need to demand this before another penny is spent !

    October 13, 2008 at 9:52 pm |
  4. Paulette

    What to restore confidence in the economy and financial institutions? Increase deposits in the bank. Reduce the main street credit ceiling while help Wall Street. Its easier and you won't have to keep giving more.
    Give $1 million to each American (approximately 360 million...okay add another 40 million who didn't complete the census and even illegals). Betcha we will all spend as well as pay out bills out, cut credit cards. That is a lot cheaper than the $780 billion dollar sell/bail out.

    October 13, 2008 at 9:21 pm |
  5. Tochi

    Europe with history of nationalization moved quikly to nationalize its banks. We ,as always were looking to see who we could farm it out.to and pay hefty fees It appears the Presidennt wants to cut through this and implement European model immediately.

    October 13, 2008 at 8:55 pm |
  6. xtina, chicago IL

    It's OK for gov't to insure savings accts, but I don't think the government should have control over any business; once we give Washington control over a business , they'll never give it back. Democrats in Congress forced banks to loan to people who were bad risks. That's wrong.

    Let the free market cycle itself through this downturn.

    October 13, 2008 at 8:54 pm |
  7. Cindy

    I think that the government is making up this plan to bail out our economy as they go along. This is something that we haven't been through before, I mean on this big of a scale, so it's not like they have anything to go by. We didn't do anything this big until we were already in the great depression so trying to prevent us from going into another one can't be easy for anyone. So why are people always criticizing? They have no idea what to do either...just guesses.

    Cindy...Ga.

    October 13, 2008 at 8:52 pm |