Anyone who thought spending money to save the banks was done thought wrong. Today while addressing the media, Treasury Secretary Timothy Geithener raised the Federal Reserves lending program to $1 trillion dollars from $800 billion. He stated that the Obama Administration will be aggressive on a two-front battle fighting against the worst financial crisis since the Great Depression. Geither said that the program is still being under review and not yet ready to begin operations. The plan is designed to boost resources for consumer credit and small business loans something Obama believes is critical to economic success. The expanded program will also help cover the real estate market and mortgage agencies. Good news here is that this is another reassurance that Bank stocks long-term will be fine as they will avoid Nationalization/Bankruptcy and if the Stimulus is structured right they should be able to get back to normal day operations at some point in the future. However though with increased spending that means borrowing more and more money from foreign nations putting the burden back on the taxpayers.
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