The administration announced it’s extending the $700 billion financial bailout program until next fall. The Treasury said it’s important to hold onto money and have it available in case any new catasrophes slam our financial system:
It’s a common enough story. A family puts their house up for sale after one of the parents gets a great job offer in another city. Sure, they bought the house at the peak of the housing bubble, but they refuse to sell for less than they paid. The house stays on the market for months on end.
The Washington Post is reporting that Treasury Secretary Timothy Geithner will testify before the House Financial Services Committee today and argue that his agency needs broad powers to seize companies and “wind them down” without allowing them to enter bankruptcy.