National Bank Means The End of the Free Market System

Today is Day 6 of the “New Trade”: the death and rebirth of the financial system as we know it. Every single day this week has brought things that no one working today has ever seen before. Yesterday was no exception

It was a day of unprecedented volatility in the credit and money markets. The prices of short-duration Treasury securities traversed ranges that are usually seen across entire interest-rate cycles. In a single day.

The stock market, which started the day about 900 points below its level of a mere week ago and kept falling, suddenly turned euphoric and rocketed about 600 points from the low that it reached at 1pm EDT.

What happened to change the mood? Henry Paulson announced that he and Ben Bernanke are planning to construct a government entity that will take ownership of much of the “bad paper,” or distressed securities, from Wall Street.

In essence, they’re planning to save the free market system by killing it.

It was just what battered, exhausted, shell-shocked and weary traders wanted to hear.

Let me tell you a few things about it…

Source: Red State (read the whole thing)

Commentary

Well, I guess the Ron Paul Supporters are getting what they wanted...a Government Bank.

Say goodbye to the Free Market. If I was the getting drunk type...I would go and get rip-roaring drunk over this deadly blow to Capitalism. The government will now take away the freedom to fail, and disrupt the market so that the true value of these investments cannot be known...just as they have the health care system, education system and the job market.