We are all preferred stock holders

The government's is expected to announce that they are buying preferred stock in the 9 largest banks and possibly many smaller ones. As a capitalist, I'm a against it. However, being a realist, I admit that the government in the eyes of the people has to make a move. So if the government has to make a move, being an investor is much more appealing to me than the government as a complete debt holder. I would much rather see the government take an equity position in a company and possibly see a rate of return than just buy a bunch of bad debt and let the banks go on their merry way.

It also means that the government allows private enterprise to operate, in hopefully an effective and efficient manner, while private enterprise should be weary that they have the government watching them closely as an investor, not just a regulatory agency.

If you have to bastardize capitalism, this may be the best solution. See Steve Wynn's opinion from last week's post.