It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
In the last few hours, in a desperate attempt to ward off a catastrophic Wall Street meltdown, the government has announced three unprecedented actions:
First, President Bush, Fed Chairman Bernanke and Treasury Secretary Paulson have called on leaders of both parties in Congress to work through the weekend to develop a plan to let the government buy up bad debts from banks.
Second, The Securities and Exchange Commission has announced a temporary ban on short selling of 799 financial stocks — an attempt to reduce the massive downward pressure on their share values.
Third, early this morning, Washington moved to guarantee money market funds that invest in high risk instruments like commercial paper. This supposedly protects money fund investors from the kind of "Breaking the Buck" crisis that arose this week at Reserve Primary Fund, buying some time for a $2 trillion industry in turmoil. But alas, this, too, is a disastrous and futile gesture.
Bottom line: These three government bombshells do not end the credit crisis. They merely threaten to spread the plague to the one borrower who heretofore stood above the crowd of sinking debtors: The United States Government itself.
Washington declares war on debt crisis!