US stake in banks 'objectionable'
Updated on 14 October 2008
As George Bush announces a $250bn investment to prop up US banks, his treasury secretary admits there was no alternative.
President Bush said the spending was not intended to take over the free market, but to preserve it.
It is almost unthinkable for any American government, especially a Republican one, to take a public stake in a huge range of banks.
Treasury Secretary Henry Paulson called it "objectionable to most Americans, me included", but said it was vital to shore up confidence in the economy.
Here in Britain, share prices have rallied strongly following a massive bank bailout, but inflation has soared to its highest level for 16 years, with sharp rises in gas and electricity prices taking it to 5.2 per cent.
And there is more gloom for the housing market.
New lending fell steeply in August, with the number of new mortgages down to 42,200, 60 per cent lower than last year.
