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...cash that Sweden poured into its banks at the time amounted to about 4% of the country's Gross Domestic Product. The comparable share of the U.S. GDP would be about $850 billion, or not much more than what Paulson has recently proposed . But in Sweden's case at least one half of that money, and possibly more, depending on the source, was recouped by subsequent equity sales...

Author: /time Magazine | Title: Sweden's Model Approach to Financial Disaster | 9/24/2008 | See Source »

...Paulson's current plan exacts no such a price from the financial institutions it proposes to bail out; the idea has not been publicly discussed by either the Congress of the Bush Administration. But it ought not be considered ideologically beyond the pale, since the U.S. government did get equity stakes when it bailed out mortgage giants Fannie Mae and Freddie Mac, as it did last week for AIG, the world's largest insurance company...

Author: /time Magazine | Title: Sweden's Model Approach to Financial Disaster | 9/24/2008 | See Source »

...that tore through the economy and wiped out billions in capital. The downturn accelerated in recent months as lenders spooked by steep losses and high-profile bank failures have tightened their purse strings. Worried that recent high-profile failures could spread and freeze financial markets, Treasury Secretary Henry M. Paulson Jr. announced the plan now under consideration to bolster confidence in U.S. financial institutions. “PIMCO is ready to work for no fee in helping to manage a program that would assist in stabilizing the U.S. economy,” El-Erian said in an interview with...

Author: By Crimson News Staff, CRIMSON STAFF WRITERS | Title: Gore To Speak on Green Issues in October Event | 9/24/2008 | See Source »

...proposed $700 billion bailout of the nation's beleaguered financial markets has become a taffy pull between the Bush Administration and lawmakers from both parties. Many on Capitol Hill believe Treasury Secretary Henry Paulson is seeking too much unregulated cash and power in his effort to stabilize the economy by buying up toxic mortgage-backed securities. He's also asking Congress to lift the ceiling on the national debt to a record $11.3 trillion from the current $10.6 trillion, which could weaken the U.S. dollar, raise interest rates and act as an additional drag on the economy. All that money...

Author: /time Magazine | Title: 7 Questions About the $700 Billion Bailout | 9/24/2008 | See Source »

...Maybe. The bailout is being undertaken by the U.S. Treasury, which means it can't be hidden away or done "off the books" in an effort to minimize its apparent scope. The Treasury will consult with experts to figure out "mechanisms for buying assets and from whom to buy," Paulson said Tuesday. "We do not know exactly what the best design is." But it's leaning toward conducting "reverse auctions" in which the Treasury would, for example, buy $1 billion in bad mortgages from whichever institution would take the least amount of money for them. On the other hand...

Author: /time Magazine | Title: 7 Questions About the $700 Billion Bailout | 9/24/2008 | See Source »

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