Paulson Finally Doing the Right Thing (at Seeking Alpha)

by: Zacks.com October 12, 2008 | about stocks: Zacks.com About this author: "America can always be counted on to do the right thing, after it has exhausted all other possibilities." - Winston Churchill The recently passed $700 billion bailout bill does contain the authority for the Government to buy new preferred stock in troubled financial institutions. At yesterday's news conference, Secretary of the Treasury Henry Paulson indicated that he might just do that. This would be following the lead of the U.K., which yesterday indicated that they are buying major stakes in its most troubled banks. This is exactly the approach that will do the most good. The core problem right now is that we have an overleveraged financial system which is trying desperately to de-leverage. When all try to deleverage at the same time, it drives... [read full story]