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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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I think this is a pre-cursor to another rate cut btw. Anyway in the realm of politics, I've read speculation that the Bush administration has an agenda to wipe out mortgage lenders that are competition to the big banks, leaving the vast majority of mortgage lending in the control of the big banks. This sort of fits in with that speculation I guess.