Socialism, n. : Any of various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy.
Today I am announcing that the Treasury will purchases equity stakes in a wide array of banks and thrifts.
– Treasury Secretary Paulson, Statement by Secretary Henry M. Paulson on Actions to Protect the US Economy, Tuesday October 14, 2008
These measures are not intended to take over the free market, but to preserve it.
– President Bush, Comments on the Economy, Tuesday October 14, 2008
Today the Treasury announced that they will be offering to purchase preferred stock in financial institutions that pay a 5% dividend for the first five years and 9% thereafter. $250 billion of the $700 billion recently approved by Congress will go towards this. In addition, they’ll also receive warrants to purchase common stock equal to 15% of the preferred stock investment. Nine large financial institutions have already signed up to receive $125 billion worth of investment.
Welcome to the United Socialist States of Amerika! God bless the U.S.S.A.!