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Nation's Three Largest Banks Team to Create a Rescue Fund of Sorts
So the big three banks are going to "rescue" the credit markets. I think this really pretense for them owning even more of it. That's really and aside, however. What really is interesting is this:
The Tresury Secretary has stepped in to the fray.
This follows the realization that the system, as it stands, cannot fix itself. The fed cannot simply print more money without weakening further what is already weak. A political solution is needed and this seems to fit the bill. Doubtless opportunity for the banks to help smaller lenders will lead to opportunism by the banks to take over those smaller lenders. It seems the motives of government and big business have collided head on with this one.
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Its starting to sound more and more familiar. Instead of passing legislation to try to fix the downturn in the early 1930s Hoover met with the leaders of industry to convinced/pressured them into holding or raising wages or committing resources in one way or another.
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This follows the realization that the system, as it stands, cannot fix itself. The fed cannot simply print more money without weakening further what is already weak. A political solution is needed and this seems to fit the bill.
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The system can fix itself, the issue is the solution is going to be painful though, and if it comes to now it falls on the shoulders of those in power. If it can be stalled another year Bush will be out of office and any collapse can be blamed on the markets not having faith in the next president, or a massive storm system or whatever.