U.S. Treasury Secretary Henry M. Paulson yesterday (Wednesday) announced a reshaping of the government’s $700 billion Troubled Asset Relief Program. Instead of purchasing troubled assets directly from banks, Paulson said the majority of the funds allotted to the Treasury Department would be used to purchase equity stakes in financial institutions and bolster the consumer credit market.

For a guy with a Harvard MBA, President Bush simply doesn’t get how real banks work… but anyone who has waited three to five days for an out of state check to clear gets how the “float” works.

The Bush Administration is considering a plan that could keep as many as 3 million homeowners who are behind on their mortgages from losing their houses, The New York Times reported today (Thursday).

US Government spending is at record highs, fueled in part by the costs of President Bush’s so-called economic ’stimulus’ package.

Reuters reports that US Treasury spending and revenue reached fresh highs in April.

US government posted a $US159.3 billion surplus in April, helped by the mid-month deadline for individuals meeting 2007 tax obligations, but it was down from the prior year’s surplus, the Treasury Department reported on Monday.

52-Week T-Bill is Back; Sweet-Smelling Deal for FTD; First Family of Oil Calls for Environmental Focus; Garmin Losing Track; PepsiCo. Stocking up on Water; Bovespa Hits Record on S&P Rating; Kraft Profit Tumbles 13%; Kellogg Profit Sheds 2%.

The Bear Stearns rescue and the Treasury department’s call for a new “blueprint”  have helped ignite a rally in financial stocks… but it seems nothing can kickstart the dollar.