A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / The First Major Stock Rally of 2009

By Daniel Politi

The Wall Street Journal banners and the New York Times leads with news that Bernard Madoff is expected to plead guilty tomorrow to 11 felony charges and will likely spend the rest of his life in prison. Prosecutors say Madoff began operating what may be the largest fraud in Wall Street’s history as early as the 1980s. Ten days before he was arrested, Madoff sent statements to clients claiming to have a total of $64.8 billion, far more than the $50 billion the disgraced financier originally confessed to losing. The Washington Post leads with the first major stock market rally of 2009 that came after Citigroup reported some surprising good news and Federal Reserve Chairman Ben Bernanke called for reforms in the financial system. Citigroup announced it was profitable in the first two months of the year, and its shares surged 38 percent. The Dow Jones industrial average increased 5.8 percent, the biggest gain since Nov. 21.

 

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Obama Faces Opposition From Democrats

By Daniel Politi

The Washington Post leads with a look at how the Obama administration is seeking to put more restrictions on free trade even as world commerce takes a plunge this year because of the global economic crisis. The administration plans to take a harder line on domestic and social issues not only when signing new trade deals but also in determining whether existing agreements will be honored. The New York Times leads with Democratic congressional leaders opposing some of the priorities that President Obama set forth in his budget. Key Democrats are questioning Obama’s plan to reduce tax deductions for the wealthiest Americans, cut agriculture subsidies, and reduce spending on Medicare, Medicaid, and Social Security, among other issues.

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / We All Fall Down

By Daniel Politi

The Washington Post leads with a new World Bank report that warned the global economy will fall into a recession for the first time since World War II as world trade suffers its steepest plunge in 80 years. The crisis will put a dent in poverty-fighting efforts, and multilateral lenders don’t have enough money to help developing nations get through the downturn. The World Bank called on developed nations to dedicate 0.7 percent of whatever they spend on stimulus programs toward a Vulnerability Fund to help developing countries. The New York Times leads with a look at how the dollar is increasing in value, a good thing for the United States that appears to be making the crisis worse in other countries. The dollar has risen 13 percent against major currencies in the last year and “has once again been affirmed as the global reserve currency,” declares the paper. The Wall Street Journal leads its world-wide newsbox with word that the White House will push world leaders to increase government spending to deal with the global downturn. The move could cause tensions with European governments that think overhauling financial regulation should be the first priority.

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Too Many Czars in the Kitchen?

By Daniel Politi

USA Today leads with a look at how the $410 billion omnibus spending bill contains $227 million for pet projects requested by lawmakers who aren’t even in Congress anymore. The New York Times and Washington Post lead with the Obama administration announcing the details of its program to rescue millions of struggling homeowners. The White House said it hopes the two-part plan will help as many as one in nine homeowners. The program received favorable reviews from several large lenders, but others insist it won’t do enough to end the ongoing foreclosure crisis.

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Obama Puts on a Happy Face

By Daniel Politi

The New York Times leads with Secretary of State Hillary Clinton’s announcement that the White House will be sending two senior officials to Syria this weekend. The move is seen as a first step in the Obama administration’s expected effort to revive relations with a key player in the Middle East that hasn’t had a U.S. ambassador for more than four years. The Washington Post leads with the administration’s efforts to boost confidence in the economy as well as the government’s moves to tackle the ongoing crisis. A day after the stock markets reached new lows, White House officials seemed to be on a mission to instill hope in the American people that things will get better as the Federal Reserve and the Treasury Department launched a program to finance new lending for consumers and businesses.

 

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Will Crisis Destroy the EU?

By Daniel Politi

The New York Times and Washington Post lead, while the Wall Street Journal goes high, with word that the federal government will provide American International Group with access to an additional $30 billion as part of yet another attempt to save the ailing insurance giant. It marks the fourth time that the government has stepped in to rescue AIG and “represents a nearly complete reversal from the one first laid out in mid-September,” notes the WSJ. At first, the government seemed intent on making sure AIG paid high interest rates for the taxpayer funds, but now those dreams seem to be over, and officials have concluded the insurance company is so intertwined with other parts of the financial sector that its collapse would be much more expensive in the long run.