Personal Finance: Don’t Follow Paulson’s Advice to Banks

This morning, there was a great deal of excitement surrounding a press conference that involved several officials (including President Bush) telling us all about how they are going to save our financial system from complete and utter ruin. The key is injecting more capital into banks, so that they will feel better about lending to each other, to businesses and to the rest of us. Bloomberg reports on the main thrust of the moves made today:
“We must restore confidence in our financial system,” Paulson said in a statement in Washington. “The needs of our economy require that our financial institutions …read more