So we are now facing:

- a silent run on the huge mass of uninsured deposits of the banking system and even a run on some insured deposits are small depositors are scared;

- a run on most of the shadow banking system: over 300 non bank mortgage lenders are now bust; the SIVs and conduits are now all bust; the five major brokers dealers are now bust (Bear and Lehman) or still under severe stress even after they have been converted into banks (Merrill, Morgan, Goldman); a run on money market funds; a serious run on hedge funds; a looming refinancing crisis for private equity firms and LBOs);

- a run on the short term liabilities of the corporate sector as the commercial paper market has totally frozen (and experiencing a roll-off) while access to medium terms and long term financings for corporations is frozen at a time when hundreds of billions of dollars of maturing debts need to be rolled over;

- a total seizure of the interbank and money markets.

This is indeed a cardiac arrest for the shadow and non-shadow banking system and for the system of financing of the corporate sector. The shutdown of financing for the corporate system is particularly scary: solvent but illiquid corporations that cannot roll over their maturing debt may now face massive defaults due to this illiquidity. And if the financing of the corporate sectors shuts down and remains shut down the risk of an economic collapse similar to the Great Depression becomes highly likely.

http://tinyurl.com/43lehu

re:"the passage of the bailout vote was, in and of itself, no magic bullet

This time the bullet cold rocked ya

A yellow ribbon instead of a swastika

Nothin' proper about ya propaganda

Fools follow rules when the set commands ya

Said it was blue

When the blood was red

That's how ya got a bullet blasted through ya head

Blasted through ya head

Blasted through ya head

I give a shout out to the living dead

Who stood and watched as the feds cold centralized

So serene on the screen

You was mesmerised

Cellular phones soundin' a death tone

Corporations cold

Turn ya to stone before ya realise

They load the clip in omnicolour

Said they pack the 9, they fire at their prime time

Sleeping gas, every home was like Alcatraz

And mutha fuckas lost their minds

Just victims of the in-house drive-by

They say jump, you say how high

Just victims of the in-house drive-by

They say jump, you say how high

Run it!

Just victims of the in-house drive-by

They say jump, you say how high

Just victims of the in-house drive-by

They say jump, you say how high

Checka, checka, check it out

They load the clip in omnicolour

Said they pack the 9, they fire it at prime time

Sleeping gas, every home was like Alcatraz

And mutha fuckas lost their minds

No escape from the mass mind rape

Play it again jack and then rewind the tape

And then play it again and again and again

Until ya mind is locked in

Believin' all the lies that they're tellin' ya

Buyin' all the products that they're sellin' ya

They say jump and ya say how high

Ya brain-dead

Ya gotta fuckin' bullet in ya head

Just victims of the in-house drive-by

They say jump, you say how high

Just victims of the in-house drive-by

They say jump, you say how high

Uggh! Yeah! Yea!

Ya standin' in line

Believin' the lies

Ya bowin' down to the flag

Ya gotta bullet in ya head

Ya standin' in line

Believin' the lies

Ya bowin' down to the flag

Ya gotta bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head

A bullet in ya head!

A bullet in ya head!

A bullet in ya head!

A bullet in ya head!

A bullet in ya head!

A bullet in ya head!

A bullet in ya head!

Ya gotta bullet in ya fuckin' head!

Yeah!

Yeah!

-Rage Against The Machine, Bullet In The Head

http://www.youtube.com/watch?v=COJ5Ha9KTws

Treasury names rescue program chief

WASHINGTON (Reuters) - The Treasury on Monday named Assistant Secretary for International Economics and Development, Neel Kashkari, as head of the $700 billion government program that will buy soured investments to help restore the financial markets to health.

Kashkari was named as the interim Assistant Secretary of the Treasury for Financial Stability - a role envisioned in the rescue plan that was signed into law by President George W. Bush last week.

Kashkari is a veteran banker from Goldman Sachs and joined the Treasury in July 2006 as a senior advisor to Treasury Secretary Henry Paulson.

http://news.yahoo.com/s/nm/20081006/bs_nm/us_financial_bailout_kashkari_2

...etc.

“This sucker is going down.”

-Bush the Terrible (also known as Bush the Cruel, Bush the Torturer, Bush the Despised, and Bush the Unholy)