$250 billion of the $750 billion bailout package is earmarked for the government to buy shares of preferred stock in U.S. banks. As much as I'm against gov't intervention -- this move really may be effective. Since the gov't is buying preferred stocks, the common stock will not be diluted. This will provide the capital needed for banks to extend credit and [unfreeze] the lending and credit markets; without harming common stockholders. When banks become healthy again, these shares can be sold on the open market for [potentially] profits to be returned to the taxpayers. Obviously, the market likes the initiative as it gained 11% yesterday. This move should attract private capital/investors back to the banking segment, which, has scared investors away for the last year. I hope this isn't a typical gov't fuck-up. But the fundamentals of this piece of the bailout seem prudent.