[PenultimateManStanding]

The Fed is supposed to be the lender of last resort and to keep the economy stable. I can see why people would be suspicious and see this as a power grab by private wealthy factions. However it seems that based on the reporting I have been following the banking system is insolvent at the top - bankrupt. What did Bear Stearns have, some 80 billion dollars in capital propping up 13 trillion dollars in credit default swaps and derivatives and whatnot. That 80 billion just vanished over night practically. JPMorgan Chase is leveraged something like 40 to 1. If Bear went under then JPMorgan goes under and then Citigroup and BofA and Wachovia and they all start falling like dominoes. Some people are saying, so? let them fall. Some say why should the tax payers bail out these fat cat corrupt bankers with their golden parachutes, yachts and mansions in the Hamptons? After all, they don't want to be bothered when times are good but when things go bad they come crying to the government and the tax payers for a bail out. All that said, and it makes good cold sense in a way, it is still the job of the Fed to prevent bank panics and attempt to keep the system functioning. If the banks are insolvent and nothing is done they will close. If the system collapses it won't be just the fat cats that suffer. If Fascism is the only way to keep things functional, then Fascism is what will be implemented. That's the logic I see at play here and I've been expecting it for years. The next round comes when Fascism doesn't work either. Hold on to your hats.