Nationalization of Banks

The US is following Europe's example in the financial crisis as a race to stabilize the economy forms. The $700 billion bailout plan has failed so Bush has advocated $250 billion of it directly to banks. Bush proposes an extra $100 billion to buy troubled assets held by firms or to make additional capital infusions into banks. The US guarantees 3 years of new debt issued and unlimited guarantee on banks deposits without interest. Federal deposit insurance will cover small businesses as well. The goal is to recapitalize banks and get them lending again among themselves, consumers, and businesses. Conservatives are upset, but liberals applaud this action. Conservatives worry about government interevention in a capitalist society but as Bush states "These measures are not designed to take over the free market but to preserve it." This plan has already triggered the biggest jump in stocks in history, but will it be enough to freeze the credit market and stabilize the economy? Only time will tell...