If this catches you by surprise, you are either an OBAMABOT, you don't have a clear understanding of the Obama agenda, or you've chosen to not pay attention.
WASHINGTON - President Obama’s top economic advisers have determined that they can shore up the nation’s banking system without having to ask Congress for more money any time soon, according to administration officials.
In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock. Did you catch that? Common stock! As in bank ownership!
Converting those loans to common shareswould turn the federal aid into available capital for a bank — and give the government a large ownership stake in return.
ARE YOU PAYING ATTENTION?
If you own bank stocks, how does this make you feel? Are you now more willing to hang on to those already battered, and now possibly diluted stocks? Are you going to to buy more?
Does anyone really think these guys are honestly trying to save our banking sysytem???? ARE YOU PAYING ATTENTION????