Timmy testified Thursday that the financial system has “stepped back from the brink,” allowing the government to wind down some programs designed to calm jittery markets. He said we need to go from rescuing the economy to repairing and rebuilding the financial system”
Not that I thrown a life vest or anything but, the first thing I’m doing is sending Merill Lynch this story, because judging by my 401k no one has told them yet.
He said that Treasury will:
•Not need to tap a $750 billion contingency fund budgeted earlier this year on top of last year’s $700 billion bailout fund. (Looks like they will need that money set aside for Health care)
•End a program this month to guarantee money market mutual funds, a program that once covered more than $3 trillion in fund assets. (The need the extra cash to cover the ear marks)
•Scale back to no more than $30 billion from $100 billion the amount that Treasury will ante up as part of a public-private program to buy toxic loans and investments from financial institutions. (Goody, I get to own more crap stuff)
He then goes on to say that the government wouldn’t make the mistake of declaring premature victory and putting “the brakes on too early.” As unemployment is still too high, the economy is weak, lending is still very low except for those fannie and Freddie Guys and businesses are still finding it hard to get credit.
Looks like I wont be sending Merrill Lynch this story after all. So what was the good news Timmy? I seemed to have missed it