Tuesday, February 24, 2009


The New York Times leads with a look at how the Obama administration is facing "mounting pressure" to put more money into troubled companies that have already received billions from Uncle Sam. American International Group, the insurance giant, is now saying its $150 billion rescue won't be enough and is asking for billions more. The requests, which have also come from two of Detroit's Big Three and Citigroup, "reflect just how hard it is to stanch the flow of losses as the economy deteriorates."
The NYT also mentions, and the Washington Post devotes its lead story to, the White House making it clear that it's willing to acquire a controlling ownership stake in troubled banks that can't raise enough private capital. The move could "culminate with the government nationalizing some of the country's largest banks," declares the Post.
Los Angeles Times leads with, and the Wall Street Journal gives big play to, yesterday's plunge in the U.S. stock market as major indexes fell to levels not seen since 1997. The Dow Jones industrial average dropped 3.4 percent and the Standard & Poor's 500 index fell 3.5 percent as the losses spread to sectors that had been doing relatively well amid the ongoing turmoil. USA Today leads with a new poll that found a majority of Americans support plans to help struggling individuals but oppose bailouts for companies. Although a slim majority thinks the plan to help homeowners is "unfair," 59 percent say it is "necessary." The WSJ leads its worldwide newsbox with President Obama promising that his administration will move to tackle the country's growing deficit. After holding a "fiscal responsibility summit" with members of both parties, Obama said that "we cannot simply spend as we please and defer the consequences to the next budget." As the administration prepares to unveil its budget Thursday, the president also announced that the White House will host a summit on health care next week.
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Economic State of the Union
Fourteen months into a downturn that appears to be deepening, President Obama will address a joint session of Congress to speak about the health of the U.S. economy.

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