More banks will fail, Paulson says

[UpInArms]

Source: CBS Marketwatch

WASHINGTON (MarketWatch) - Conditions in the U.S. economy are particularly difficult and more banks will fail before the current financial market crisis ends, Treasury Secretary Henry Paulson said Wednesday.

The $700 billion bank rescue package was not created to save every institution, Paulson said at a press conference. Read his full statement.

Analysts have forecast a significant consolidation of the U.S. banking system over the next several years and believe the Paulson bailout plan will be a catalyst for change.

The bailout rescue plan allows Paulson to inject capital into struggling financial institutions. Asked what guidelines the government would use to decide winners and losers, Paulson demurred, saying that the safety of the entire system was the only consideration.

Paulson pleaded for market patience because the ongoing financial market turmoil will not end quickly despite Congress approving the $700 billion package, he said.

Read more: http://www.marketwatch.com/news/story/paulson-some-banks-fail-even/story.aspx?guid=%7BC43C8462%2D1146%2D45FF%2DA280%2D00B7CD74BC49%7D&dist=msr_8

[hatrack]

1. Gosh, thanks Hank! Valuable tip!

We could NEVER have figured that one out without your help!

:puke:

:eyes:

:rofl:

[Nambe]

2. Yikes, let´s put all our money in the stock market.

[Virginia Dare]

3. Well that should instill some confidence...n/t

[HopeHoops]

4. I feel SO much better now!

[BearSquirrel2]

5. Yes, if you're not my buddy ...

Yes, if you're not one of our "friends", we'll allow your bank to fail.

[sarcasmo]

6. National City is next on the list.

[Skink]

7. Goldman's a bank now what's the problem?

They'll take the business and pass on the savings to us.

[llmart]

8. Why does this man still have a job?

n/t

[bhikkhu]

9. Nothing like a positive outlook to boost things

If Paulson were a doctor, he'd preface every patient interview with "You are probably just going to die, but I guess you expect me to try to keep you upright for a little longer, so we'll give it a shot.".