Friday, October 10, 2008

The US Government to Go Long Financials Now?

Now this is interesting news I think.

U.S. Treasury Secretary Henry Paulson said the U.S. will buy equity ``as soon as we can'' in banks and other financial institutions to restore market stability and revive economic growth.

The Treasury is ``working to develop a standardized program that is open to a broad array of financial institutions,'' Paulson said at a press conference after a meeting in Washington of finance ministers and central bankers from Group of Seven countries.

They will certainly be buying low and hopefully getting a chance to sell high in a few years. It is just weird that taxpayers will suddenly be holding banking stock. I guess this is the point where Main Streen and Wall Street merge and become joined at the equity hip.

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