Monday, October 20, 2008

Comment:: Banks lining up for bailout

Well it seems that all types of banks are lining up to for a piece of the government's $250 billion nationalization plan, according to Treasury Secretary Henry Paulson. Many analysts believe there are many more banks out there in trouble and that the administration will eventually have to ask for more bailout money.

Economist Nouriel Roubini said that probably the government will have to at least double the current amount for bank recapitalization.

On the bright side, Federal Reserve chief Ben Bernanke endorsed a new economic stimulus plan to help jump start the economy. The Bush administration already disbursed about $100 billion to tax filers this year in hopes they would spend the money and generate more production. However, one has to think that a smart person at this time would be putting the extra money into savings for a bit of future security. Indeed President George W. Bush bluntly called on Americans to quickly spend their stimulus checks once they received them. It's just part of the consumerism world view that caused this mess in the first place.

Venture capital down

A newly released DLA Piper survey of technology and venture capital executives indicates that 66 percent of technology companies are reducing revenue forecasts. A National Venture Capital Association and PriceWaterhouseCoopers report shows a drop in venture capital deals during the third quarter.

Venture capital investment fell 7 percent to $7.1 billion in the third quarter, compared with $7.7 billion during the second quarter, according to data from Thomson Reuters. During the third quarter, 907 deals were closed, compared to 1,033 deals for the second quarter of the year. The amount of financing going to early start-ups raising their first rounds of funding dropped to its lowest level since 2004.

United Press International

Lots of banks interested in bailout - Paulson - 1 hour ago
By Tami Luhby, senior writer NEW YORK ( -- Banks of all sizes are interested in a piece of the federal government's $250 billion fund to recapitalize financial institutions, Treasury Secretary Henry Paulson said Monday.
Paulson outlines $250B capital injection plan
UPDATE 3-US Treasury urges banks to deploy new govt capital Reuters

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