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Text size [+][-]  Tuesday February 9 2010GLOBAL EDITION

Considered view
02 Oct 2008 20:04

Misallocation of capital

Context News

The Emergency Economic Stabilization Act of 2008 passed the Senate by a vote of 75 to 25 on October 1 and is expected to be voted on by the House of Representatives on October 3.

The US plan to rescue ailing banks will invest up to $700bn in distressed mortgage-related securities and other loans. In a credit crunch, that will crowd out others more deserving of funding. That could deepen the economic slowdown, and is certainly likely to extend it.

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More stories by:  Martin Hutchinson






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