Bailout | St. Louis Public Radio

Bailout

Planet Money breaks down the "how much they got" and "how much they've paid back" of the bailouts of the financial system and auto industry. Check it out via the link.

This article first appeared in the St. Louis Beacon: November 21, 2008 - The auto industry is pulling out all stops to secure a place at the public trough. In the latest development, Congress has given the automakers an ultimatum: No plan no bailout.

This article first appeared in the St. Louis Beacon: November 21, 2008 - There are no heroes to be found in today's economic crisis, and it won't be over any time soon, says St. Louis economist Murray Weidenbaum.

"I've been saying for some time that this is going to be a long, deep recession; we're not going to come quickly out of it. I hope that some time next year we'll be hitting bottom and the economy will start turning up -- but not dramatically,'' Weidenbaum told the Beacon on Thursday.

This article first appeared in the St. Louis Beacon: November 20, 2008 - Writing satire in this country is getting to be challenging as the Republican National Committee audits the contents of Sarah Palin's underwear drawer. Or the Bush administration - neo-conservatives who swept into office promising the usual bromides of limited government and fiscal responsibility - saves us from the perils of socialism by urging the Treasury Department to purchase the banking industry.

Commentary: When is a bailout counterproductive?

Nov 18, 2008

This article first appeared in the St. Louis Beacon: November 18, 2008 - In the past few months, the government has intervened in the market at an unprecedented level, putting cash into financial service firms by direct loans or purchase of their preferred stock. And more is promised.

This article first appeared in the St. Louis Beacon: November 12, 2008 - On Wednesday, U.S. Treasury Secretary Henry Paulson  announced that the government has changed how it will spend the $700 billion emergency economic "bailout" fund approved by Congress on Oct. 3. Instead of buying so-called toxic mortgages, it is now considering helping consumer credit markets. 

This article first appeared in the St. Louis Beacon: November 6, 2008 - Clayton-based Enterprise Bank and Trust, with $2.2 billion in total assets, is one of the largest local commercial lenders in the St. Louis area, helping to fund such high-profile deals as the $35 million 14th Street Mall redevelopment project and the $40 million mixed-use Cupples Station apartments and retail space near Busch Stadium, among many others.

Commentary: Free markets aren't the problem

Oct 22, 2008

This article first appeared in the St. Louis Beacon: October 22, 2008 - The rollout of the government’s rescue plan offers new and disturbing insights to the future state of our economy. We are learning that the Treasury’s funding of banks is aimed as much at reshaping the industry as stabilizing it. A Treasury official told The New York Times, “One purpose of this plan is to drive consolidation.”

This article first appeared in the St. Louis Beacon: October 18, 2008 - Washington's intervention in the recent financial meltdown will probably make money for taxpayers, was "elegantly designed" and is in no way a prelude to a second Great Depression, a panel of financial experts said Friday at Washington University.

This article first appeared in the St. Louis Beacon: October 16, 2008 - Take it from Mike Walsh, president and CEO of Eagle Bank, a 97-year-old community bank in St. Louis County with $700 million in assets.

The $250 billion federal infusion for the troubled "big boys" in the U.S. banking system is going down hard among the ranks of community banks that pride themselves on conservative lending policies, supporting their customer base and keeping a whistle-clean balance sheet. 

This article first appeared in the St. Louis Beacon: October 15, 2008 - The other day, one of my sisters accused me of being a socialist. This outrageous slander was rendered during the course of an otherwise civil political discussion. While I'm personally close to all of my siblings, this particular sister and I move to different universes when talk turns to politics.

This article first appeared in the St. Louis Beacon: October 3, 2008 - The economic bailout plan rejected by the House earlier this week passed today by a comfortable margin, 263-171, after changes were made in the Senate and a full court press was put on House members to reassure the markets and the American public.

This article first appeared in the St. Louis Beacon: October 2, 2008 - Rep. William Lacy Clay, D-St. Louis, told Beacon reporters before the vice presidential debate Thursday night that he will vote no Friday when the revised financial bailout plan reaches the House. 

Clay said he opposes the measure because of both its increased price, over $800 billion, and its top-down approach. Clay said it would have been better to help homeowners having trouble paying their mortgages.

"Business? In this business, you're always one step away from bankruptcy. Funny money, credit, speculation... Somewhere in this country there's a little old lady with seventy-nine dollars and twenty-five cents. And the five cents is a Buffalo nickel... If she cashes in her investment, the whole thing'll collapse -- General Motors, the Pentagon, the DuPont Sisters and the whole shebang... We're all runnin' downhill. Gotta keep runnin' faster all the time or it'll all fall down..."

— the late character actor, Dub Taylor, as disgruntled gas station operator in 1974 film, Thunderbolt and Lightfoot

This article first appeared in the St. Louis Beacon: September 26, 2008 - As the financial bailout talks continue in Washington, U.S. Rep. Todd Akin wants to make sure that Congress doesn't feel a false sense of urgency and do anything rash with taxpayers' money.

Akin, a Republican from Town and Country, is part of the GOP study committee whose members have balked at the bailout plan put together by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke.

Commentary: Financial bailout: Words of caution

Sep 26, 2008

This article first appeared in the St. Louis Beacon: September 26, 2008 - At this stage it is imprudent to speculate on the intricate details that the government’s bailout plan will include. There are, however, several broader issues to consider as the plan takes shape.

First, the rescue plan should not be used as an opportunity to extend the role of government in other areas of the economy.

A primer on the financial bailout

Sep 25, 2008

This article first appeared in the St. Louis Beacon: September 25, 2008 - To help make sense of the current economic crisis, the Beacon asked local experts in finance and investing for their answers to basic questions. The experts are: Stuart Greenbaum, former dean of the Washington University School of Business and now Bank of America emeritus professor of managerial leadership; Radhakrishnan Gopalan, assistant professor of finance at Washington University; Rick Hill of Hill Investment Group in Clayton; and Pamela Kuehling, a financial planner with Smith Barney. Here are their responses:

This article first appeared in the St. Louis Beacon: September 23, 2008 - There are two main constitutional questions about the bailout bill. One is whether Congress violates the Constitution by cutting off all judicial review. The second is whether this is an unconstitutional delegation of legislative authority to the Treasury secretary.

This article first appeared in the St. Louis Beacon: September 22, 2008 - What's the prospect, or wisdom, of a giant, lumbering bank holding company merging with a giant, staggering investment banking company?

When it comes to Wachovia Corp. and Morgan Stanley, the answer is "no one knows," because the economic landscape continues to shift dramatically and often.

This article first appeared in the St. Louis Beacon: September 21, 2008 - The economic storm that blew in like a hurricane last week has been years in making.

The full effects of the crisis are still unknown. While Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke insist that the bail-out's cost to taxpayers will be in the hundreds of billions of dollars, some economists think the likely price tag will be in the $1 trillion to $2 trillion range. Furthermore, the fallout from the crisis is likely to include a massive accumulation of debt, which would result in a serious drag on economic growth.