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How to Get the Biggest Bang for 10 Billion Bucks

WS Journal - If you had a spare $10 billion over the next four years, how would you spend it to achieve the most for humanity? This is a small amount compared to rich-government budgets. But if we could set aside an extra $10 billion, we could achieve an awful lot.

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The Real Costs of the Bailouts

WS Journal - In the rescue plan Congress was negotiating last week — at $700 billion the biggest bailout in U.S. history — a key goal is to remove much of those soured mortgage securities from banks’ books, possibly through an auction system.

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How to build on the rate cuts

Financial Times - The turmoil in financial markets shows no sign of abating. The sweeping cuts in interest rates by central banks on Wednesday, as the UK took the historic step of part-nationalising its biggest banks to bolster their shattered balance sheets, failed to calm investors’ nerves. To restore confidence in the [...]

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US government rescues insurer AIG

BBC - The US Federal Reserve has announced an $85bn (£48bn) rescue package for AIG, the country’s biggest insurance company, to save it from bankruptcy.

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