U.S. will buy stock in banks, Paulson says

[jdobbin]

http://www.msnbc.msn.com/id/27123491/

WASHINGTON - The federal government will buy stock in American banks for the first time since the Great Depression, Treasury Secretary Henry Paulson said Friday in the latest dramatic effort to reverse a global financial panic.

“This is a period like none of us has ever seen before,” declared Paulson at a rare Friday evening news conference. He said the government program to buy stock in private U.S. financial firms will be open to a broad array of institutions, including banks, in an effort to help them raise desperately needed cash.

Looks like they are trying to forestall another collapse on Monday.

During Bush's speech this morning, the stocks continue to plummet as if it didn't matter what he said.