Another day, another bailout. Stock futures point to a higher opening today after the U.S. government agreed to guarantee most of Citigroup Inc.’s potential $306 billion losses on high-risk assets.
President-elect Barack Obama today will formally unveil the economic team that will inherit this mess. The names of the top candidates, like Timothy Geithner and Larry Summers, have already been leaked, but the press conference could give more insight into their plans. It takes place at 11 a.m. Chicago time, noon EST.
One thing they’ll probably do is spend lots of money. Obama and congressional Democrats are preparing a stimulus package that could total as much as $700 billion over the next two years. The money would go to tax cuts for the middle class and spending on projects like roads and bridges.
Things look relatively quiet in Washington as Congress has adjourned for Thanksgiving week. President George W. Bush, back from his last international summit in Peru, meets with Israeli Prime Minister Ehud Olmert and holds a photo-op with Nobel Prize winners.