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Injection For The Financial Sector

Last night we were given a peek into what Hank Paulson and the Treasury Department have in their magic hat for the next stage of saving the financial sector. An injection of $250 billion to be distributed to U.S. banks.
We are being shown that the government is standing by what they said in regards to supporting and saving the financial sector. The official announcement is to be given at 8:00am on Tuesday by Mr. Paulson, he outlined the plan Monday afternoon to nine of the country’s leading banking institutions. It didn’t seem that this plan is a voluntary one. Paulson’s advice is that they would have to accept the government investment.
The banks that were involved and told how much of an injection they will receive. The breakdown is as follows: JP Morgan and Citigroup will receive $25 billion each, Wells Fargo and Bank of America each will get $20 billion (as well as another $5 billion for each of their acquisitions), Goldman Sachs and Morgan Stanley receive $10 billion each along with Bank of New York Mellon and State Street will receive $2 to $3 billion.
There’s a lot more to the plan than I care to get into here and since I’m posting this just after midnight Monday night, there’s still quite a bit that is unclear at this time. The one thing I can say at this moment about the news, is that there will be another up day for the stock market, especially the financial sector. Which of course makes me a happy camper since I bought Morgan Stanley Friday afternoon after it fell below $10.
Don’t get me wrong, I do expect the markets to go back down in due time, but there is positive news that will help the markets for the next day or so. At this time in this economic crisis, I will take advantage of any opportunity I can get my hands on. The name of this blog isn’t called beating the stock market for nothing and I will do it one stock at a time.

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