Euro-zones Proposed Plans

The center stage now belongs to the Eurozones proposed bailout plans. Leaders of the 15 nations that use the Euro as their currency gathered on Sunday to finalize a drafted plan which is designed to stabilize their financial markets. This plan calls for the governments of the euro zone to issue guarantees and insurance, and to buy stock in needy companies and issue capital to qualified financial institutions through the use of preferred shares in order to stabilize long term maturities.

Much like the U.S. Federal Reserve did last week, the European Central Bank will be acquiring commercial paper from financial institutions and will be injecting funds into cash starved enterprises. Any company receiving this emergency support would also be restructured. The plan does not specify a cost for the program but does state that governments would be watchful of the taxpayers interests.

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