Fed throws huge Hail Mary……..

Another day, another bail out but this time they have thrown the play book out the window.

It feels like a 4th down with 80m to go and 10 seconds on the clock.

Game over.

Wrap up the toxic stuff (we’ve heard that before) and hopefully it will all go away. Strange that Goldmans have been spared the ignominy of going under as Paulson comes in to the rescue. Anyone wondering about the Goldmans cabal at the centre of a government that always yells out “we had no choice” will be muttering feverishly about the intervention on Friday.

Forget about whether the US should lose its AAA rating or the $ be heaved off the cliff, what concerns me is the idea that ex-market players are running the public finances. Why not let all the banks fail? If that’s the outcome of the “free market” then let it happen. As long as depositors money is safe the rest is a simple case of caveat emptor.

The taxpayer is picking up the bill so why not pay as little as possible.

And what then you ask? Well the banking system will be nationalised to a point, focused in the issuance of money as opposed to making loans. The point is that there are elements of our financial system that we could well do without.

They said the Titanic was unsinkable.