The truth is non-partisan

The $700 billion bailout was not working to restore confidence in
financial institutions and the economy, so the Fed felt a reduction in
interest rates was necessary to get business borrowing again.

The British government also announced that it has purchased interest
in financial institutions as a way of assuring consumers and restoring
confidence in that country's banks. A similar measure is being
bantered around Washington.

Although he wouldn't say it directly, U.S. Treasury Secretary Henry
Paulson suggested that the bailout legislation has given him the
authority to take a wide range of actions that might include buying
stock in banks and other financial institutions. "I'm not going to
speculate on all the things we may have to do," he said. "I would
simply say we have a broad range of authorities and tools...to work
with going forward here."

Speaking at a news conference ahead of a Friday meeting of Group of
Seven finance ministers, Paulson also said, "We will use all of the
tools we've been given to maximum effectiveness, including
strengthening the capitalization of financial institutions of every
size,"

Congress in passing the bailout legislation has opened a Pandora's
box. The bailout was wrong in the first place, because by increasing
money supply, it further threatened the value of the low U.S. dollar.

These latest actions in lowering interest rates in the U.S. and around
the world are an admission that the bailout isn't working.

The next step on the spiral down further into socialism is government
ownership of banks. And, Paulson seems to be saying he now has the
authority to do that in America.

We are seeing a further erosion of Congressional powers as the
legislative branch gives more authority to bureaucrats in the
executive.

This is happening in the midst of an election where neither of the
major candidates will take a leadership role to halt this foolishness.
In Tuesday's presidential debate neither candidate said anything
about the bailout, its consequences, or future drastic measures being
talked about to restore confidence in the U.S. economy. It was as if
the problem doesn't exist.

http://www.reuters.com/article/newsOne/idUSTRE4980LA20081009

// posted by John Fisher @ 6:43 AM