Bush reveals new steps to steady banking industry

President Bush this morning announced a $250 billion plan by the government to directly buy shares in the nation's leading banks, saying the drastic steps were "not intended to take over the free market but to preserve it." This following steps by the British goverment who stepped in for banks in Britain and received equity shares.

Under the new multifaceted stabilization program described today, the government will initially buy stocks in nine major U.S. banks. When financial markets stabilize and recover, the banks are expected to buy the stock back from the government

This latest move in a long series of moves taken by the US government over the past several weeks to prop up a weakening financial industry, has seemed to staunch the bleeding, and has helped the markets stabilize. More importantly the credit markets have begun to open up.