US investing in 9 major banks

www.bloomberg.com...

This is all well and good for a near term pop in the markets, but the reality is both the consumer and the overall economy are still in a tailspin. This is certainly positive and most necessary, but I don't see how it will lead to any meaningful recovery in the market over the next year or two.

They are certainly doing what they can, but ultimately market foces will prevail.

=====

"Oct. 13 (Bloomberg) -- The Bush administration will announce a plan to rescue frozen credit markets that includes spending about half of a total of $250 billion for preferred shares of nine major banks, people briefed on the matter said.

The companies are Citigroup Inc., Wells Fargo & Co., JPMorgan Chase & Co., Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley, State Street Corp., and Bank of New York Mellon Corp., the people said. One of the people also said Merrill Lynch & Co. will receive an investment."

Originally posted by leo123

This is all well and good for a near term pop in the markets, but the reality is both the consumer and the overall economy are still in a tailspin. This is certainly positive and most necessary, but I don't see how it will lead to any meaningful recovery in the market over the next year or two.

They are certainly doing what they can, but ultimately market foces will prevail.

Nu-uuh, The Federal Reserve is going to directly buy stocks on the exchange in order to keep the market going up forever and the media is gonna tell us that everything is wonderful.

Do you think the federal reserve will pay my taxes for me as well?


[edit on 13-10-2008 by In nothing we trust]

Thanks for posting the list of the chosen ones. I see my bank is on the list, don't know if that's a good thing or a bad thing. Doesn't matter either way to me because I'm always broke these days.

Originally posted by neo4116
Doesn't matter either way to me because I'm always broke these days.

Then you certainly have nothing to worry about - you have already arrived.

Originally posted by leo123
... people briefed on the matter said.

... the people said.

One of the people also said...

Don't worry we have people on the inside.

Originally posted by In nothing we trust

One of the people also said...

Don't worry we have people on the inside.

Godspeed my man - we are certainly experiencing an historical economic event - that has yet to fully unfold.

JK