Paulson will nationalize Morgan Stanley and Goldman Sachs this weekend

[w¡n9Nµ7 §£@¥€r 123]

As the financial crisis threatens to spiral out of control, Treasury Secretary Henry Paulson is prepared to take extraordinary steps through the extensive authority granted to him under emergency rescue legislation.

With the legislation’s main mechanism—an auction system to purchase bad mortgage-based securities—still weeks away from implementation, Paulson is now expediting plans to inject capital into banks, CNBC has learned.

...

"I don't wish to spread alarm on the line people but the big issue confronting the market is I'm afraid the health and sustainability of Morgan Stanley and Goldman Sachs," Hugh Hendry, Partner and CIO at Eclectica, told CNBC early Friday. "It is unimaginable that they can be allowed to go, I suspect that they will be nationalized at some point today or over the weekend," he add.

The Emergency Economic Stabilization Act of 2008’s vague language gives Paulson almost unlimited power to intervene and leaves much up to interpretation.

http://www.cnbc.com//id/27114651

[IAMX 3,055]

While he's at this power grab, can he nationalize a house for me? Thanks man. *fist bumps Paulson*

Edited October 10, 2008 by SRVT

[mawilson 2,133]

Will someone please nationalize Exxon?

[Otto 83]

Step in the right direction if you ask me...

[Mr. Big Dog 10,747]

*fist bumps Paulson*

I trust this is not of those terrorist fist bumps.

Step in the right direction if you ask me...

Let's hear it for grand socialism.

Edited October 10, 2008 by Mr. Big Dog