The credit crisis and the panic in mid-September (Lehman Brothers bankruptcy) triggered the formation of the Troubled Assert Rescue Plan (TARP). After several attempts from the former Treasury Secretary Henry Paulson to enact the program, the TARP finally won the support of the Senate on Oct. 1st, and was signed by President Bush on Oct. 3rd. Since then, the plan has undergone numerous changes, as the main managers of the plan adjust to the changing economic situations. The newest version, laid out by Secretary Geithner, has received an overwhelmingly positive reaction from the markets (with the DJIA surging the day the new plan was announced).
For a detailed explanation of the TARP and how evolved from the beginning of October up until today, please visit: http://topics.nytimes.com/topics/reference/timestopics/subjects/c/credit_crisis/bailout_plan/index.html
There you can also find a recent interview with Secretary Geithner, where he offers a detailed explanation of the newest version of the plan, announced on March 23rd.
Please feel free to post your comments regarding the TARP. How would you rate the government’s actions up to this point? What were the main strengths and weaknesses of the previous versions of the plan? What about the new version? Is the newest version finally going to work?