U.S. Treasury will buy $250 billion in bank stocks

[AstroManLuca]

People might be discussing it in other threads, but I think this deserves its own.

http://www.washingtonpost.com/...0184.html?hpid=topnews

Henry Paulson has gone back on his previous position opposing such a move and will now be partially nationalizing several banks. This is likely an answer to Europe's similar moves over the past week.

So, what do you think? Personally, it sounds like a good idea to me. It'll hurt Republicans who have been pressing for less regulation, and it'll especially anger those in the Republican base who can't stand the idea of nationalizing anything, least of all our big financial institutions, but it seems like the only way to get some real oversight.

 

[StageLeft]

Bushy bush is asking for an extra $100B, too.

I guess that goes well on the way to supporting my 9/25 prediction in my sig

 

[DisgruntledVirus]

I can't wait to see who is the next group to get a "bailout"

 

[fleshconsumed]

Saw it this morning, but didn't want to create the thread.

From what I remember, the first draft of the bailout (don't know if it changed in the latest revisions) said 250B will be available immediately and 100B more with congress approval, the other half of the 700B was up for debate, whatever that means. If this provision is still in effect it means that feds are going all out, spending as much as they were allowed. Kind of sad to see them throw taxpayers money so fast and so carelessly.

 

[StageLeft]

Originally posted by: fleshconsumed
Saw it this morning, but didn't want to create the thread.

From what I remember, the first draft of the bailout (don't know if it changed in the latest revisions) said 250B will be available immediately and 100B more with congress approval, the other half of the 700B was up for debate, whatever that means. If this provision is still in effect it means that feds are going all out, spending as much as they were allowed. Kind of sad to see them throw taxpayers money so fast and so carelessly.

Article at CNN is somewhat vague but i think you may be right.

 

[Thump553]

It was announced as a purchase of nonvoting common stock in (nine?) agreeing banks. Sounds like a better and quicker solution than the gradual purchase of "toxic" assets.

I believe the government is also guaranteeing the interbank debts of these banks, going forward, for 2-3 years. That should ease up the credit crisis very shortly.

 

[CycloWizard]

It's BS, pure and simple. They are buying things with money they don't have, which is how this mess was created in the first place. I can't buy things that I can't afford, so I don't see why the government should be able to do so. I'm sick and tired of being penalized for being financially responsible.

 

[frostedflakes]

I thought it was $250 billion available immediately, $100 billion more with presidential approval, and the final $350 billion with congressional approval?