U.S. Economic Crisis Information

From the Washington Post: "President Bush said yesterday that the credit crisis that has seized world markets could devastate the U.S. economy unless Congress acts quickly to approve a $700 billion bailout plan for the nation's financial system, a message aimed at reluctant lawmakers as much as a deeply skeptical public."

The text of the President's address on September 24, 2008, is available on the White House website. The White House Economy page has summary information on the initial bailout proposal.

Several Congressional committees have held hearings in recent days on the economic crisis. The Senate Banking, Housing, and Urban Affairs Committee held a hearing on September 23, "Turmoil in US Credit Markets: Recent Actions Regarding Government Sponsored Entities, Investment Banks and Other Financial Institutions." The committee website includes the initial draft legislation. A summary of the committee's proposal in response to the Treasury Department's plan is also on the website.

The House Financial Services Committee held a hearing on September 24, "The Future of Financial Services: Exploring Solutions for the Market Crisis." The Joint Economic Committee held a hearing on September 24 on the economic outlook. Most hearing webpages include prepared testimony of witnesses and archived video of the hearing.

The Treasury Department has made information available about the proposed buyouts. The site also includes recent statements by Secretary Paulson and press releases about the financial markets.

The Federal Reserve website is another useful source of information on the current economic situation. The summary of recent Fed actions lists additional measures taken to address elevated pressures in funding markets.

The Congressional Budget Office (CBO) has new data on the economic outlook and on federal responses to "market turmoil."

Source: Montgomery, L., and Kane, P. (25 Sept. 2008). "Bush Calls Bailout Vital to Economy, Will Meet With McCain and Obama: Proposal Takes Shape in Congress, but Broad Support Is Lacking." Washington Post. A01.