From Asia to the Americas, world stock markets are weathering another day of loss. VOA's Michael Bowman reports from Washington that the global ll-off comes as the Bush administration announces a major shift in its strategy to rescue troubled financial institutions, while congressional leaders pledge efforts to prop up America's battered automobile industry.
Last month, the U.S. Congress approved a $700 billion rescue package to save financial firms hit hard by a rash of home foreclosures. The goal was to unfreeze tight credit and lesn the verity of an economic downturn that has spread across the globe.
陶铸中学At the time, the U.S. Treasury said a significant portion of the funds would be ud to purcha so-called "troubled asts" - bad debt stemming from mortgages defaulted on by borrowers. With debt burdens lifted, it was hoped that banks and other financial institutions would be strengthened, and the credit crunch would ea.
Now the plan has changed. Treasury Secretary Henry Paulson spoke at a news conference
on Wednesday.
芥末黄瓜"Over the past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related asts," he said. "Our asssment at this time is that this is not the most effective way to u [government bailout] funds. But we will continue to examine whether targeted forms of ast purcha can play a uful role in helping to strengthen our financial system and support lending."
The Bush administration has embarked on an unprecedented program of direct governm
ent investment in banks through stock purchas - effectively partially nationalizing America's banking system. Governments in Europe and elwhere have taken similar steps in recent weeks.
Treasury Secretary Paulson also spoke of his intention to boost institutions that provide consumer credit in the form of credit cards as well as student and automobile loans.
Tight credit conditions have added to the woes of U.S. carmakers, as some consumers have been unable to get loans to purcha vehicles. But U.S. automakers were ailing even before the financial crisis struck, losing market share to foreign brands that provide more choices for fuel-efficient vehicles. In addition, American carmakers have been saddled with hefty costs stemming from pensions for retired employees and pricey health insurance premiums for its workforce.
八段锦名称 | 慢调
General Motors CEO Rick Wagoner at a news conference in Detroit with company Product Development Vice Chairman Bob Lutz, right. 07 Nov, 2008 |
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After years of steep loss, the top-three U.S. automakers - General Motors, Ford and Chrysler - say they could face bankruptcy in coming months. Such an outcome is unthinkable, according to Governor Jennifer Granholm of Michigan, where the America's automobile industry is headquartered.
"This industry supports one-in-ten jobs in the country. If this industry is allowed to fail, there will be a ripple effect throughout the nation," said Granholm.
关于春节的手抄报英语Democratic Congressional leaders are pressing for an emergency $25 billion loan to automakers as part of the $700 billion financial rescue package.
Michigan Senator Carl Levin says the amount being discusd is tiny compared to the funds spent to prop up the country's largest insurance firm, American International Group, or AIG.
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尚慧敏Senator Carl Levin, 07 Dec 2007 |
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"One hundred-fifty billion dollars has gone to one insurance giant - AIG. Twenty-five billion dollars in a direct bridge loan to the auto industry, given its unique central role in this economy, does not em at all out of line [i.e., unreasonable]," said Levin.
But skeptics argue that such an infusion of government funds would only postpone bankruptcy without addressing the underlying caus of the decline in American car manufacturing. They point out that veral U.S. airlines have gone through bankruptcy and reorganization and emerged stronger for having done so.
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