WASHINGTON - President Bush on Tuesday announced a $250 billion plan by the government to directly buy shares in the nation's leading banks, saying the drastic steps were "not intended to take over the free market but to preserve it."

Am I the only one that saw this coming, preserve the free market. yikes

http://news.yahoo.com/s/ap/20081014/ap_on_bi_ge/financial_meltdown

didn`t they just drop 700 million into the country already ?

are they trying to buy up the entire country ?

what does this all mean ?

They are doing everything they can to stave off a serious recession. Europe was the first to jump into this latest buy in of banks and it seems to be working.

The DOW made historic jump yesterday of 936 pts.

It seems to have taken the edge off the crisis and the sense of panic that seemed to grip investors and the market.

If people would just remain chilled.

ok,..but when the dust settles,.

whose gonna be running the country ?

China of course. They own most of the mortgages.

Maybe the 9 major banks who are purchasing the debts.

All it is a paper shuffle and I'm sure the beneficiaries will not be us.

Under the new multifaceted stabilization program described Tuesday, the government will initially buy stocks in nine major U.S. banks. When financial markets stabilize and recover, the banks are expected to buy the stock back from the government, Bush said in brief remarks from the White House Rose Garden.

The Federal Reserve, meanwhile, announced that it will begin buying vast amounts of short-term debt on Oct. 27 — its latest effort to break through a credit clog. The Fed is invoking Depression-era emergency powers to buy commercial paper — a crucial short-term funding that many companies rely on to pay their workers and buy supplies. Last week the Fed said it intended to take the action but didn't specify when.

I truly just dont see it happening... please explain

govt ownership is the first step to communism

It's just awful. Who's going to be the watchdog for that?

I do see it as a major effort to gain and maintain control, how can this benefit the working class??? Ultimately, not naive to think the government is not out to make money.

I have been watching this crisis closely and it seems that all the financial wizards have been struggling with how to turn this economy around. Especially when it affected the world markets as much as it has. They have struggled at predicting the effect that various rescue options would have.

It appears as though they try one thing and if that fails to turn things around, they come up with something else. I think we were all led to believe a couple weeks ago, that the $700 billion bail out was going to solve everything. Then the markets plummetted.

The rally on wall street yesterday I believe was a good indicator that they are on the path to a solution to the crisis. I hope the upward trend continues.

There is still much work to be done to fix things so that this never happens again. I really blame the leaders of this country for not taking some sort of analysis and action, they should have seen this coming, I think we all knew something was screwy when home values almost doubled from 2003 - 2006.

You know England just bought up large blocks of some major banks but they did something pretty grand.

They told the executives who had wrecked their banks to resign and placed limits on the compensation they can receive.

Where's the accountability in the U.S. plan?

They will figure that out later on it's apparently not important now. They can only handle one thing at a time.

or they will sit in a circle and point fingers, keep those watching amused all the while doing absolutely nothing.

I wish they would ask the people that were actually smart enough to predict this "crisis" 10 years ago.


Here's the problem. Our debt based systemwon't work unless we continually increase the debt worldwide indifiniately. If the debt at anytime begins to slow down, or decrease, the entire worldwide system will fail. This is a mathmatical certainty...

We are talking about banks here. Without debt,banks have no money. Why? Because their reasources are fictional, just computer figures. The only thing that keeps the system going is the lag between money transactions.