KPCC News In Brief
Business professor says bailout failure partly due to poor communication by Treasury secretary
Today’s congressional defeat of the $700 billion federal plan to rescue the country’s financial services sector had to do in part with the Treasury secretary’s poor communication about what it was for, UC Berkeley business professor James Wilcox told KPCC’s AirTalk.
James Wilcox: “Somehow the Treasury let this come to be known, and even uttered the words, ‘bailout’ and Wall Street basically in the same paragraph. That was a huge mistake.”
The U.S. House of Representatives voted 228 to 205 against the plan. In response to that vote, the Dow Jones Industrial Average plunged more than 400 points today. Supporters of the plan maintain that it would have shored up the entire economic infrastructure, from small business loans to the international flow of credit, and not just American financial institutions.
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- September 29, 2008 12:27 PM
- Categories: Business/Economy, Politics/Public Affairs
