A Change of Topic...Nationalizing the Banks...

There is a financial crisis in the United States. The government is coordinating a plan to get the economy back on track. A plan was made. The United States will use a portion, $250 billion, of the $700 billion bailout money to implement this plan. The U.S. will purchase equity shares to inject capital into banks. This new capital will help strengthen financial institutions. It will allow banks to provide loans for large and small businesses.

This will fill holes caused by financial crisis. This is a short term measure to insure viability of America’s banking system. This will take effect immediately. Banks have been unable to borrow money. When money flow is more freely among banks, more Americans can borrow money to buy homes and other necessities.

The FDIC will expand government insurance to cover all non interest bearing accounts. These accounts are used for everyday actions among small businesses. This insurance will bring small banks a piece of mind. This will bring greater stability to the banking system.

The Federal Reserve will soon finalize work on a new program to serve as a buyer of last resort for commercial paper. The Federal Reserve will help American businesses meet payroll and purchase inventory and invest to create jobs. Each of these new programs contains safeguards to protect taxpayers.