Another Rough Day for Stocks

Paulson also indicated that the government could use the funds to support the nonbank financial sector that provides nearly 40 percent of the credit consumers rely on for credit cards, auto loans and student loans. He also said the department continues to explore strategies to reduce foreclosures.

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But one industry unlikely to benefit from the changes announced today is the failing auto industry. "The automakers are important to us and a key part of the manufacturing industry," Paulson said. "I've said very clearly that we need a solution, but it has to be one that leads to viability and the intent of the TARP was to deal with the financial industry."

The White House today said it wants the auto industry to succeed but stressed that Congress must act. "We have gone as far as we can with the authority Congress has given in order to help industries," White House spokeswoman Dana Perino said.

As more signs indicate that both the U.S. and the global economies continue to suffer, oil prices have plunged, as have gasoline prices. And the Energy Department now forecasts gasoline consumption will drop 3 percent for the year. For 2009, total oil consumption is expected to decline by 1.3 percent.

Oil prices closed today at $56.16 a barrel, dropping $3.17, or 5.3 percent.