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Sounds reasonable enough, but there is one MASSIVE flaw in this approach…
Which enterprises are “viable”? How do you know?
This is the essential failure of Greenspan’s banking system post SandL crisis… It created a banking system where one could not distinguish a “viable” bank from a failed bank by looking at the balance sheet…
All were massively [...]

April 20, 2007 — I don’t see (subprime mortgage market troubles) imposing a serious problem. I think its going to be largely contained.
July 26, 2007 — I don’t think it [the subprime mess] poses any threat to the overall economy.
November 29, 2007 — While the difficulties in housing and credit markets and the effects of [...]

The Fed is trying to stimulate buying by the consumer by just increasing the money supply through the banking system. THAT WILL NOT WORK.
The problem here is credit worthiness of the consumer which is trickling up to businesses. Banks have restricted credit to only those with very high credit scores no matter how low interest [...]

NEW YORK (Reuters) - President-elect Barack Obama’s team is considering a plan to boost the recession-hit U.S. economy that could be far larger than previous estimates and might reach $1 trillion over two years, the Wall Street Journal reported on Saturday.
Obama aides, who were considering a half-trillion dollar package two weeks ago, now consider $600 [...]

In terms of the magnitude of money lost and the interconnectedness of the international banking system, this crisis dwarfs both that of 1929 and the 1989 Japanese crisis. To think that’s it’s over after one short year is ludicrous. People who think we’ve turned some corner on this are simply delusional. There are lots of [...]

The market goes down, and down, and down, and all we get are complaints it “Hasn’t gone deep enough, it’s being artificially propped up, maybe the PPT is at work.”
Then the market begins to rally, as it always EVENTUALLY will, and even if a short, shallow rally it’s “The PPT is manipulating the market, the [...]

It must, because so many adverse factors are already with us and need time to be resolved. Let us look at some of the basic facts:
1. most world shipping is currently idle;
2. the banking system is still not functioning;
3. that there is a crisis in trust and confidence;
4. that manufacturing output is pre-programmed to decline [...]

George Washington’s Blog
Wednesday, Nov 26, 2008
PhD economist Marc Faber thinks the U.S. will go bankrupt. He’s not alone.
Credit default swaps betting that America will default on its obligations keeps going up and up and up:
The failure of Citigroup has put the viability of the entire banking system in question.
And as a MarketWatch commentator points out:
Washington [...]

In 1910, seven men held a secret meeting on Jekyll Island off the coast of Georgia. It’s estimated that those seven men represented one-sixth of the world’s wealth. Six were Americans representing J.P. Morgan, John D. Rockefeller, and the U.S. government. One was a European representing the Rothschilds and Warburgs.
In 1913, the U.S. Federal [...]

How Fast is U.S Debt Increasing
09/29/2008 ——-9,945,578,231,981.59
10/21/2008 ——10,467,391,133,731.14
http://www.treasurydirect.gov/NP/BPDLogin?application=np
(enter dates for period you want debt figures from)
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We are on track for a $600 billion month or $7.2 trillion for the year. Now, there is no way that will continue for that long but, $3 trillion might be. Some say it will take that much for the [...]

Congress was told that a financial collapse and martial law were a “fait a compli” if they did not pass TARP immediately. We are now 5 weeks out and Treasury only has $60 Billion left of the $350 Billion initial tranche, they will now need to go back to Congress for the second tranche. The [...]

How many banks will file bankruptcy without recent $2 trillion emergency loan from Fed?
Fed Hides Destination Of $2 Trillion In Bailout Money
Fails to comply with congressional demands for transparency, underscoring age-old problem of top down socialism and letting the fox guard the henhouse
Paul Joseph Watson
Prison Planet.com
Tuesday, November 11, 2008
The Federal Reserve is [...]

Nov. 10 (Bloomberg) — The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency [...]

By Barry Grey
27 October 2008 “WSWS” — In an unusually frank article published in Saturday’s New York Times, the newspaper’s economic columnist, Joe Nocera, reveals what he calls “the dirty little secret of the banking industry”–namely, that “it has no intention of using the [government bailout] money to make new loans.”
As Nocera explains, [...]

Paul J. Vigna writes:
The U.S. government, despite a massive support operation that’s largely merged the balance sheets of the banking system with the Federal Reserve, lacks the resources to solve the credit crisis, Sempra Metals economist John Kemp writes, as relayed by FT’s Alphaville. “The scale of the rescue operation will strain the Fed’s and [...]