Consumers aren’t spending, the GDP is shrinking, and the jobs are dwindling: there’s nothing much good to see in the numbers as they pour in. The economic data is measured in worsts—worst GDP in 26 years, worst January for the DJIA in 113 years, the price tag for detoxifying the banking sector has risen to the trillions. The shy-of-a-trillion-dollar U.S. stimulus package passed through the House with only Democratic support. Now a mix of Democratic and Republican senators complain that the bill needs a.) more jobs creation, b.) more tax cuts, or c.) both of the above.
The Obama administration has not unveiled its much-anticipated rescue plan for financial sector. As of yesterday, some press reports had Treasury Secretary Tim Geithner planning to present a comprehensive solution—including creation of a “bad bank” to drain the poisonous assets from the financial system—next week.