October 8, 2008
-- by Dave Johnson
It is possible, just possible that the Treasury is so scared by the financial meltdown that they might, just might do the right thing with some of the bailout money.
This just out from the New York Times, U.S. May Take Ownership Stake in Banks,
Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, according to government officials.This is very different from buying the bad debts with taxpayer money. This injects capital into the banks, enabling them to make loans again and because it is an ownership stake the taxpayer will reap the returns.
Posted by Dave Johnson at October 8, 2008 8:22 PM
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