The people in control do not want this crisis fixed. The key is the SEC and the year 2007, where the fuse was lit on the bomb built in 2005 and 2006. The stim bill the senate is voting on today is to set up the economic Pearl Harbor. Geithner just got an announcement from China that altho they hate the bill, they will continue to finance it. Clearly (and according to Senator Burton) Geithner has promised them that rates will maintain purchasing power. But to do so will be to consign the fundamental root problem in housing to insolubility. The Big 8, the TARP banks, are the prize.

Sure enough, right on cue, the “card check” people went after ‘em today –the TARP money they took turns out to’ve been a bite from a poisoned apple. They’ll need to pay it back in a hurry or the unions –as per the threats made today –are gonna roast ‘em, gonna get the class action lawsuits going where the banks will be in the dock for everything everywhere.

So, the banks need to pay back TARP quick but they are under the rule, they need permission from federal regulators before they can pay back money. boy is THAT queer street. you owe me five bucks but you can’t pay me back without my permission?

anyhoo, as soon as we get long rates back up to Carter levels, the big 8 banks will be flush –even if they ARE by then in the hands of the preferred shareholders (the gov’t, which the gov’t calls “the taxpayers”) –due to the “spread”.

The big loser? Savers and small business. Liberty, IOW.