U.S. mulls buying bank shares

U.S. mulls buying bank shares

money.cnn.com

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

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Well here we go... I am curious under what other pretense they will take further direct control of the banks. If stocks continue to drop, and credit-lines do not open, will they take even further control? Paulson clearly has been given too much power imo, and it's worse when you consider the guy that couldn't forsee this coming and did nothing to stop it, is the one slated to fix it.

money.cnn.com
(visit the link for the full news article)

The problem I see with this plan is, for all intents and purposes you are depositing your wages with the government. To my way of thinking this is not a very good idea, you might as well just give them your whole check and accept "credits"from them for your expenses.