Make no mistake, it is coming. They are clearly in panic mode [nakedcapitalism via Economist's View]:
“We have lost control,” said Hale, quoting [Federal Reserve Chairman] Bernanke. “We cannot stabilize the dollar. We cannot control commodity prices.”
(Please note that they really could never control it anyway, regardless).
The NYT says:
The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history. While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.
