You Can Lead a Horse to Water.........

So $250 billion of the Emergency Economic Stabilization Plan's $700 billion will be spent on buying preferred shares of financial companies. As has been noted elsewhere, this provides no guarantee of increased lending. In fact, cable TV talking heads were excited to discuss the possibility of mergers with the increased stash of cash. More on this later.

All I know is that the U.S. Treasury will be issuing more debt. In a previous post I discussed the prospects for the 2009 budget deficit, I will submit a new post with updates shortly.