Another Lurch

Earthside Comments: Another day, another lurch towards another scheme to try and hold water in a sieve. That's pretty much what Bush, the Wall Street con artists, and the Dimocrats are up to today.

Now the silver bullet is going to be for the central government to start owning banks. Fascism, communism ... take your pick, what Bush and Paulson are proposing is not in the free enterprise, competitive tradition of the United States. We are witnessing the triumph of 'corporatism', whatever ideology it springs from.

In bringing up this plan after yesterday's interest rate cut, after another bailout of AIG, after the buying of commercial paper plan Monday, after the $700 billion bailout bill ... we are seeing panic and looting going on to the benefit of the highest levels of the government and the transnational mega-corporations.

Our opinion is that you be just as predatory now as they are being: do what is best for you, especially when it comes to you dealings with the governments and businesses.

Link: White House Considers Qwnership Stakes in Banks | Associated Press

The Bush administration is considering taking ownership stakes in certain U.S. banks as an option for dealing with a severe global credit crisis.

An administration official, who spoke on condition of anonymity because no decision has been made, said the $700 billion rescue package passed by Congress last week allows the Treasury Department to inject fresh capital into financial institutions and get ownership shares in return.

This official said all the new powers granted in the legislation were being considered as the administration seeks to deal with a serious credit crisis that has caused the biggest upheavals on Wall Street in seven decades and continues to roil global markets. ...

... Treasury Secretary Henry Paulson told reporters that Treasury was moving quickly to implement the $700 billion rescue effort and he specifically mentioned reviewing ways to bolster the capital of banks.

"We will use all the tools we've been given to maximum effectiveness, including strengthening the capitalization of financial institutions of every size," Paulson said at a Wednesday news conference.

Asked whether he would try something like the British plan, Paulson said: "We have a broad range of authorities and tools. ... We've emphasized the purchase of liquid assets, but we have a broad range of authorities. And I'm confident we have the authorities we need to work with going forward."

The administration so far has stressed its major goal is to purchase bad loans from financial institutions.