As Lehman twists in the wind, some in the markets call for government intervention in the marketplace.
Pimco founder and co-CIO Bill Gross declares that the US government must give the Treasury power to buy debt and other assets to stave off a financial crisis.
Gross warns that he and other big investors will avoid buying bank debt until Treasury Secretary Henry Paulson injects some $400 billion to $500 billion into the financial system.
- Watch Exclusive Interview with Fannie & Freddie Regulator
But Gross tells CNBC that Pimco will still consider taking on debt from Fannie Mae and Freddie Mac. (Why? Watch full Gross interview—and debate with Jim Cramer—below.)
What You Were Reading:
Alaska Gov. Sarah Palin, named John McCain's presidential running mate, addresses the Republican National Convention on Sept. 3 and Rep. Adam Putnam (R-Fla.) tells CNBC why Palin has "a unique understanding of our energy needs" at a critical time. (See Putnam interview, below.)
The dollar hits its highest level against the euro this year—again—after the European Central Bank cut its outlook for euro-zone growth