Follow the Money: Are Taxpayers on the Hook for Hundreds of Billions of Dollars 
for a Credit Crisis that Was Overblown?
Sat, 01/31/2009  - dlindorff 
This article appears in the current issue of Treasury & Risk Magazine

Key members of Congress were stunned to hear Federal Reserve Board Chairman 
Ben Bernanke and Treasury Secretary Hank Paulson say on Sept. 18 in a 
closed-door meeting on Capitol Hill that the country was "days away" from a 
complete financial meltdown-one that could lead to Depression-like runs on 
banks, widespread violence and ultimately even to a possible declaration of 
martial law. It was a vision of Armageddon, but, of course, 10 days later, 
the House rejected a Wall Street bailout package sent over by Paulson, only 
to pass one in a more limited form-the Emergency Economic Stabilization 
Act-a week later that gave Paulson less power and only half the money he 
wanted.

Meanwhile, the financial system did not collapse and while a few banks were 
failing, there were no runs on them, and martial law wasn't invoked. One 
reason things didn't fall apart when Congress didn't immediately act as 
Paulson and Bernanke demanded, may be that there wasn't any danger of a 
meltdown in the first place.

Read more  http://www.thiscantbehappening.net/?q=node/262




The Ugly Truth: America's Economy is Not Coming Back
Wed, 01/28/2009  - dlindorff 
President Barack Obama and his economic team are being careful to couch all 
their talk about economic stimulus programs and bank bailout programs in 
warnings that the economic downturn is serious and that it will take 
considerable time to bounce back.

I'm reminded of an experience I had with Chinese medicine when I was living 
in Shanghai back in 1992. I had come down with a nasty case of the flu while 
teaching journalism at Fudan University on a Fulbright Scholar program.


Read more  http://www.thiscantbehappening.net/?q=node/261

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