Corporate welfare at its finest.

White House:

This is a pivotal moment for America's economy. Problems that originated in the credit markets -- and first showed up in the area of subprime mortgages -- have spread throughout our financial system. This has led to an erosion of confidence that has frozen many financial transactions, including loans to consumers and to businesses seeking to expand and create jobs. As a result, we must act now to protect our nation's economic health from serious risk.

There will be ample opportunity to debate the origins of this problem. Now is the time to solve it. In our nation's history, there have been moments that require us to come together across party lines to address major challenges. This is such a moment.

America's economy is facing unprecedented challenges, and we are responding with unprecedented action.

Paul Krugman details what happened and says:

The unthinkable - a government buyout of much of the private sector's bad debt - has become the inevitable.