An Extensive, Powerful, Transformative–Hoarding

Treasury Chief Says Banks Must Deploy New Capital

WASHINGTON — Describing the government’s financial bailout plan as “extensive, powerful and transformative,” Treasury Secretary Henry M. Paulson Jr. said on Tuesday that the injection of $250 billion into the nation’s banks was needed to restore confidence and avoid a collapse of the financial system.

Speaking shortly after President Bush used similar terms to describe the proposal, Mr. Paulson said the Treasury would make $250 billion available to banks to help recapitalize those banks and to get them lending again, among themselves and to businesses and consumers.

. . . “The needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it,”

–read entire article–


How quickly has restore confidence and avoid a collapse of the financial system become a cliche? A week? A month? One loses track.

Frightened as they remain, recipient banks will (of course) hoard it.

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