The Big Guns Are Out
President George W. Bush, the Treasury Dept., the Federal Reserve and the Federal Deposit Insurance Corp. are all out in force today, as they should be. You own
Author:Camilo WoodReviewer:Dexter CookeJul 31, 20202.7K Shares2.7M Views
President George W. Bush, the Treasury Dept., the Federal Reserve and the Federal Deposit Insurance Corp. are all out in forcetoday, as they should be. You own a piece of some of our biggest banks today.
Bushwent first, explaining to the American people that Washington will invest $250 billion in the nation’s banks. The Treasury Dept. will take equity stakes in banks, which have been pressed into accepting partial nationalization in return for an investment of taxpayer money. The FDIC is setto talk about launching an insurance fund to guarantee new issues of bank debt.
Bush defended the move, saying it’s not an abandonment of the free market.
Angry Bear puts it this way:
“„I’ve always wanted to have my very own bank…
The Big Picturehas a rundownof which banks will get the money – and how much they’ll get. And a little commentary on the fact that, as unthinkable as partially nationalizing banks may seem, it should have happened far sooner:
“„Here we are, more than one year into the credit crisis, and long after the collapse of Bear Stearns, and a month after Lehman Bros., AIG, WAMU, Fannie/Freddie, Wachovia, etc. and we are getting a capital injection into the key banks.
“„As we noted yesterday, Paulson (and to a lesser degree, Bernanke) were way behind the curve in recognizing the Housing, Economy and Credit issues.
“„Although Paulson was against the capital injection, the Fed chair was not. As Krugman notedyesterday, “this was also the solution privately favored by Ben Bernanke.”
It may not have happened as quickly as it should have, but it’s reality now.
Maybe you should feel the pride of ownership when you walk past a Citigroup or Bank of America branch today.
Camilo Wood
Author
Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing.
Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers.
Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
Dexter Cooke
Reviewer
Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide.
He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina.
Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations.
As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all.
Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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