Where US Consumers Can Turn Now

Insured accounts best bet as Wall Street tumbles

(NEWSER) - After the biggest single-day's loss in Wall Street's history, even Americans whose sole investment is a bank account are nervously scratching their heads. Here are some guidelines to the failed-bailout crisis from the New York Times:

• What happens next? The market's deep dive may scare Congress into passing the bailout or a new bill, at which point stocks may rebound.

Regulator clashes with Paulson, Bernanke over relief for lenders

(NEWSER) - The FDIC chief is blasting the White House and Congress for focusing the $700 billion bailout on financial institutions and not giving homeowners facing foreclosure more help, reports the Wall Street Journal. Sheila Bair, a Bush appointee, says the government’s insistence that homeowners not profit from its help—while appearing unconcerned about institutional profiteering—has been “a frustration.” More»

Deficit makes coordinated response economically, psychologically crucial

(NEWSER) - A global storm continues to threaten the world’s economies, and the US government takeover of Fannie Mae and Freddie Mac is just one step, albeit a major one, toward recovery. Whether the latest attempt to right the ship succeeds "ultimately boils down to two big issues," writes Mohamed El-Erian in the Financial Times. Underlying both is the reality of globalization. More»

High-risk model hasn't changed, could lead to new crisis, says Reich

(NEWSER) - Goldman Sachs is back in the black, with trading and stock underwriting revenues at an all-time high—and that should scare you, former Clinton cabinet member Robert Reich writes in Salon. While Goldman's earnings may signal that the current crisis is abating, the bank hasn't modified high-risk strategies that forced the taxpayer to bail it out. And Goldman's latest success will only encourage competitors to do the same. More»

Conversion could stretch bailout fund by $100 billion

(NEWSER) - President Obama’s economic team has figured a way to keep the banks afloat without asking Congress for more money, by converting the government's existing bailout loans to common stock, the New York Times reports. The conversion plan could stretch Treasury’s fund by more than $100 billion, but it would expose taxpayers to increased risk and would be another step in the politically explosive direction of nationalization. More»