Nationalizing of Banks

Our nation is slipping into a crisis.  Officials and leaders are desperately looking for ways to help us.  Over the past couple of days these leaders have met with other leading nations to collect ideas to help save our economy.  The U.S. Government is going to use $250 billion of the $700 billion bailout plan to inject into  banks. When placing the money into the banks, the officials hope that banks will gain confidence and begin lending once more.  America's plan is based off of leading banking plans produced by England.  Other European nations, such as Germany and France have also created plans to guarantee bank debt.  In doing this America is forced into a race with leading European banking nations so they do not lose any major investors. This is where the $250 billion plan comes into play.   

Of the $250 billion, half of the money is going to be split among 9 big banks.  Citigroup, JP Morgan Chase, Wells Fargo, Bank of America, Merrill Lynch, Goldman Sachs,  Morgan Stanley Wachovia Corporation, and The Bank of New York.  The rest of the money will be distributed between the rest of the banks in the nation.  The plan behind the injection is to "unfreeze" credit markets.  Already, since the plan has gone into effect somewhat, the market has show a significant rebound.  The Dow Jones industrial average increased by 11%.  that is the largest single-day gain in the stock market since 1930.  This may prove that our market is unstable or on an improvement.