October 14, 2008

President Bush said that the US Government will be Buying Back Major US Banks’ Stocks

President Bush on Tuesday said that the US government will be buying back stocks from the countries’ leading banks. A few of the large banks had to be pressured into the program because Treasury Secretary Henry Paulson wanted to start with banks that were doing well to show that the bailout is not just for banks that messed up. President bush said that this will provide financial stability for the economy and help stabilize the economy.

We regret having to take these actions,” said Paulson. “Today’s actions are not what we ever wanted to do — but today’s actions are what we must do to restore confidence to our financial system.”

The Fed will be buying large amounts of short term debt starting Oct 27th. Depression era emergency plans are being rolled out in order to buy commercial paper, which is crucial for small companies to pay short term needs. Fed Chairman Ben Bernanke is for the plan, and also noted that planners will continue to push plans to fix our broken economy.

I think that this will help the economy, and it’s good that at least some people are trying to make it seem like the government isn’t bailing out just the failing companies. Of course these plans over time (if they work) will lessen the amount of foreclosures that are occurring. NJLispendens recorded 207 pre-foreclosure records on October 1st alone, and the numbers keep climbing.

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