Financial Upheaval Narrows Options of Next U.S. President

Gerald Seib – The Wall Street Journal

Copyright The Wall Street Journal
A snippet:
The domestic agenda of the next president is shrinking. Nobody, anywhere, knows how much of a financial burden the federal government has taken on in the past few weeks, but the cost of bailing out Fannie Mae, Freddie Mac and American International Group Inc. — to say nothing of the potential cost of riding to the rescue of American auto makers, which looks increasingly likely — could conceivably run into the hundreds of billions.
The government’s cost for bailouts ultimately may turn out to be less onerous than some of today’s darker projections, depending on how markets evolve, of course. But no matter. Whoever is putting together a new economic plan for a new administration in January won’t dare to base it on a rosy scenario.
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