Economic News - September 22, 2008

Dollar Falls, Oil Rises On Rescue Doubts

Volatility spread across financial markets, undermining the
dollar and contributing to the biggest-ever one-day surge in oil prices.

Treasury Relents On Key Points

The White House and Congress inched closer to agreement on the rescue plan, with the Treasury making most of the concessions.

Bailout Pitch Tests Paulson's Political Skill

Henry Paulson knows how to do a deal on Wall Street behind closed doors. But how about in Washington?

Paulson May Push Debt to Highest Level Since 1954, Deficit to $1 Trillion Treasury Secretary Henry Paulson's
$700 billion proposal to stabilize the banking system may push
the national debt to the highest level since 1954, threatening
an erosion of foreign appetite for U.S. bonds.

Singapore Inflation Slows as Fuel Prices Drop, Reducing Currency Pressure Singapore's inflation slowed for a
second month in August as petrol stations lowered pump prices
and food costs eased, reducing pressure on the central bank to
allow faster gains in the currency.

Paulson, Bernanke May Find Painful Parallels in 1990s Nordic Bailout, Bust If Henry Paulson and Ben S.
Bernanke want to know what happens when central banks and
governments bail out financial institutions, they should be
``learning Swedish.''

Paulson Plan Is a `Joke', Says Ohmae, Calling for $5 Trillion Rescue Plan Treasury Secretary Henry Paulson's
$700 billion plan to buy devalued assets from financial companies
is ``a joke'' because it doesn't go far enough to calm markets,
said Kenichi Ohmae, president of Business Breakthrough Inc.

South Korea Lowers Property Taxes to Bolster Economy as Buiding Work Drops South Korea will lower taxes on
residential and commercial properties to stoke an economy that
is growing at the weakest pace in more than a year as consumers
cut spending and building work declines.

Oil surges in biggest 1-day jump

Sep 22 - Oil prices surged to the biggest
one-day gain in history. Prices rose more than 16 dollars, on the heels
of the government financial rescue plan.