In case anyone cares, the idea that our publicly traded institutions operate in a free market has been dealt a death knell, as the powers that be are now admitting that the stock market is being artificially insulated from a crash. Apparently, the free market enthusiasts only go in for the capitalist free-for-all when the indices are on the way up.

How much more debt will the US be willing to incur to maintain the illusion of wealth for just a little longer? This shell game is subject to the law of diminishing returns, and whomever inherits this mess of debt come 2009 will have hell to pay, and Bush to thank.

Update: Nouriel Roubini has published this interesting read about a federal fiscal bailout, the fiscal debt incurred from the Bush tax cuts and the coming political fallout from the recession.

 

Tags: Fed, Bernanke, PPT, JP+Oliva

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