Stocks fall and people’s fear rise, so the government decides buy stakes in banks. America follows Britain and the other European countries.  Yesterday, they guaranteed bank debt and took ownership stakes. The $250 out of the $700 billion bailout plan to “preserve” the free market, to unfreeze credit markets. Bush uses words of “preservation,” “limited,” and “temporary” to calm tension. Throwing money into the big and small banks to secure bad mortgage assets. Half of the money placed into small and the other into the big to increase lending to other banks and customers.  Paulson met with major CEOs of banks. He tells them to allow US to purchase their stocks for the good of economy. US long-term goal is to benefit monetarily.

Plan will get banks lending between other banks and customers to increases spending and jobs. Plan includes clipping the “golden parachutes” of major banking executives. F.D.I.C guarantees deposits to accounts that don’t bear interest and to all small-business deposits. Also, F.D.I.C issues unlimited deposit insurance.