The U.S. Treasury is working on "Plan C" for saving the U.S. economy, reports the Washington Post:

Informally known as Plan C, the internal project is focused on vexing problems such as the distressed commercial real estate markets, the high rate of delinquencies among homeowners, and the struggles of community and regional banks, said government sources familiar with the effort.
Part of the mission is assessing which firms are the most vulnerable and trying to decipher what assets these companies hold and whether they pose a danger to the wider financial system. Plan C is a small-scale, relatively informal approach to a problem the administration hopes to address in the long term by empowering the Federal Reserve to oversee systemic risk.

Officials tell the post this is a sign of the government moving into a new phase of the recovery, one in which it acts preemptively.

Bonus: Simon Johnson on commercial real estate asking for a bailout.

categories: News

4:04 - July 9, 2009

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