In what is unabashedly being called a "partial nationalization" of the U.S. banking industry, the Bush administration announced Tuesday morning that the federal government will be purchasing $250 billion worth of preferred stocks in all of the nation's nine largest banks. Ostensibly to avoid any appearance of bias, healthy and ailing institutions alike are being forced to submit to the program, the first of what will surely be a train of dictatorial moves by Treasury Secretary Henry Paulson, who has been granted unconstitutional plenary authority over the entire financial sector as a result of the recent bailout bill.
When Sen. John McCain was campaigning in Waukesha, Wisconsin, on October 9, a supporter told him "I'm really mad" because of "socialists taking over the country," the Associated Press reported. "I think I got the message," McCain responded. "The gentleman is right." McCain then went on to talk about the Democrats' control of Congress.
In response to the ongoing financial crisis, world leaders are planning "a new Bretton Woods," according to Italian Prime Minister Silvio Berlusconi. According to an October 10th article by Steve Schere on the business and financial news website Bloomberg.com:
Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they "rewrite the rules of international finance.''
'The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,'' Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis 'can't just be for one country, or even just for Europe, but global.''
Triple-digit losses on the Dow are becoming a commonplace, but there are now ominous signs that the financial crisis of 2008 is entering a new and possibly more devastating phase. Thursday, October 9, saw the Dow plummet another 670 points, well below 9000 to a new five-year low. The latest catalyst for market decline is the likelihood that GM and possibly other automakers may soon be facing bankruptcy.
As the financial crisis continues, the Bush administration, led by Treasury Secretary Henry Paulson, is moving ahead to enact the unconstitutional and socialistic measures contained in the recently passed and misleadingly nicknamed "bailout bill" — misleading not because it's not a bailout, but because it's much more than that.