Sep 26 2008
the entire program
Washington Mutual Incorporated collapsed this morning, buckling under the weight of its bad investments in mortgage markets, making it the largest bank failure in US history. If JP Morgan Chase had not bought up the bank, the Federal Deposit Insurance Company or FDIC, according to some analysts, could have used up half its money to cover account holders. As the US economy flounders with crisis after crisis, the Bush administration has been working with Congress to pass a massive $700 billion bailout of Wall Street that sparked nation-wide protests yesterday. In a meeting at the White House yesterday, House Republicans proposed an alternative plan at the last-minute, stalling the talks. If Bush’s plan, or some version of it passes this weekend, it will be the largest in US history. President Bush in a speech on Wednesday night, addressed the nation in a grave tone. Joining us to answer the questions of why the economy crashed, and whether the bailout plan is the right answer is Charlie Cray, Director of the Center for Corporate Policy. Part of the problem with the economy that’s becoming apparent even to lawmakers, are the ridiculously high salaries of CEOs. Sarah Anderson joins us to discuss the incentive structure for top corporate executives.
GUESTS: Charlie Cray, director of the Center for Corporate Policy, and Sarah Anderson, director of the Global Economy Project at the Institute for Policy Studies and is co-author of the book “Field Guide to the Global Economy.”