The U.S. Government announced it will buy shares in banks in order to loosen paralyzed channels of credit and restore confidence in the financial system; however, this was not enough to erase the fear in the United States and, once again, Wall Street closed reflecting losses.
Declines are not comparable to those from last week, but definitely give a more realistic picture of the situation after yesterday's euphoria, the only day that reflected any gain in the past 9 days.
The purchase of shares is a move that has not been observed since the Great Depression and means that banks agree to a partial, as well as temporary, nationalization; the Government acquires preferential participation and administrative power.
