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The last time President Bush said “Trust me we must act now” we entered into our worst foreign-policy ever.  Today Secretary Paulson is asking Congress for a clean $700 million bailout or the economy will collapse tomorrow.

This weekend it seem like all the congressmen were scared and ready to fork over $700 billion except for Ron Paul,, but most seem to had a good night sleep, because  now many want to add their own amendments to the bill.

This crisis pretty much shut the mouths of the free marketers. The privatization of Social Security is pretty much off the table. Tax-cuts for the wealthy or middle-class are not a reality. Today’s free marketers wanted free rein when they were making profits, but they want socialism when it comes to losses. Ronald Reagan’s slogan “Government is not solution, it is the problem” has died, these bail-outs have called for a government solution. I’m just waiting for someone to tell me universal health care is socialist….So

Right now the Federal Reserve is unable and buy up all the treasury notes in order to drive interest rates down, because the interest rates are nearly at zero.  Unless Congress acts; the banks will not be able to loan out money causing many corporations to lay off their employees.

Some good has already come from this crisis. The mortgage interest rates have come down since the federal government took over Fannie Mae and Freddie Mac; hopefully we get good enforceable regulations to boot. The creation of another government agency to buy up all the bad loans looks like a solution everyone is looking at.  Bailouts have produced good results in the past such as Chrysler, Mexico, and Lockheed.

A little conspiracy is floating out there: It seems that the conservative Republicans wanted a crisis like this with a government bailout for Wall Street leaving no money for entitlements. As Speaker of the House, Newt Gingrich told a Republican audience that the party was going to "let Medicare whither on the vine. ...I doubt that the GOP could be that creative.

We cannot fix this problem with a Herbert Hoover solution (the fundamentals of our economy are sound) mentality.