Obama’s rescue plan sends markets into tailspin
IN AN ELECTION YEAR and under pressure from his ruling ANC party to deliver a populist Budget, The Star said Manuel held the line against his party (as well as those capitalists begging for stimulus packages), delivering a fundamentally honest Budget. Business Day said Manuel’s Budget would enable Government to respond boldly to the economic downturn.
WHAT HAPPENED WORLD MARKETS FELL ahead of the US Senate voting to approve a US$838bn economic stimulus package that’s expected to create up to 4m jobs and avert a full-blown economic crisis. The latest stimulus package will raise the US administration’s financial commitment to tackling the current financial crisis to $3 trillion. THE NEW YORK TIMES said the stimulus package will have a positive effect on the US economy, as spending by distressed consumers would get the country’s economic engines humming again. The Washington Post said the US economy was in a grave liquidity trap and needed bold interventions to free it.