The Politics of Hop3

The Politics of Hop3 - Deal shut down numerous banks...

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The Politics of Hope After a close, hard-fought six months of party caucuses and primary elections, Obama  eked out a narrow victory over Clinton. He made Senator  Joseph  Biden of Delaware his  vice-presidential selection. Most measures of popular sentiment indicated that the public  wanted a change. The two candidates began the fall campaign season as strong  favorites. Any chance that McCain and Palin could pull ahead was ended by the sharp financial  crisis that began in the last half of September and sent the economy crashing. Caused  by excessive speculation in risky mortgage-backed securities and other unstable  investments, the crash led to the bankruptcy of the venerable Lehman Brothers  investment house and momentarily imperiled the entire financial superstructure of the  nation. The Federal Deposit Insurance Corporation (FDIC), created during the New 
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Unformatted text preview: Deal, shut down numerous banks without loss to depositors, but had no jurisdiction over the giant financial investment companies that did not engage in commercial banking. Moreover, it had only limited capabilities to deal with those corporations that did both. Fearing a general financial meltdown reminiscent of the darkest days of the Great Depression, the U.S. Treasury and the Federal Reserve engineered a Troubled Assets Relief Program (TARP) that was funded by a $700 billion congressional appropriation. The TARP program kept the endangered investment banks afloat. What it could not do was stave off a sharp economic collapse in which millions of U.S. workers lost their jobs. That November, the voters elected Obama president of the United States, with approximately 53 percent of the vote to McCain’s 46....
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  • Fall '10
  • Senator Joseph Biden, entire financial superstructure, financial meltdown reminiscent, risky mortgage­backed securities, venerable Lehman Brothers, fall campaign season

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