Government Bank Buyout Looking Inevitable

About the only take-away from Bush’s speech of a few moments ago – one which might have otherwise been as content-free as anything during the Katrina disaster – is that Bush claimed that the Federal Reserve “has injected hundreds of billions of dollars into the system.”

Mind you, that money while approved has not actually gone “into the system” just yet, but it does appear as though the government is now staring directly into the face of the fact that what is needed is cash and that the only way to get that cash into the system quickly would be to buy up shares of the company.  The original plan was to buy up the bad loans.  But while that would have gotten some capital into the market, experts have noted that buying shares of the banks would be as much as eight times as effective in solving this crisis.

By Tommy Belknap

Owner, developer, editor of DragonFlyEye.Net, Tom Belknap is also a freelance journalist for The 585 lifestyle magazine. He lives in the Rochester area with his wife and son.