“WASHINGTON (AP) – Financial officials from the world’s wealthiest industrial countries are pledging decisive action to deal with the biggest upheavals to hit the global financial system since the Great Depression.”     – Martin Crutsinger, an AP Economics Writer /1

In an effort to expand the firepower the United States is bringing to the problem, Treasury Secretary Henry Paulson announced Friday that it had decided to go forward with a plan to buy a part ownership in a broad array of American banks.  NOTE:  It would be the first time the U.S. government has employed such a program since the 1930s. /2

I am advised that President Bush invited Paulson and Federal Reserve Chairman Ben Bernanke and their counterparts from the other G-7 countries to come to the White House Saturday morning for a meeting that the administration hoped would demonstrate global resolve in attacking (action word) the current crisis.

The G-7 officials wrapped up three hours of closed-door talks Friday with one of the shortest joint communiques in the history of the group.  It was also the most direct in its promise to take “all necessary steps to unfreeze credit and money markets” to end a severe credit crisis that began in the U.S. a year ago but since has spread worldwide and has grown in furiosity.

Who would have dreamed that World War II would be a unified fight against global financial chaos?

A big question currently being bandied about on Capital Hill, Wall Street and of course posed by the bozos on MSNBC) is: 

Whether the standing one-page action plan will be enough to stop the bleeding as investors watch trillions of dollars of wealth melt away?

One simple answer is: 

Certainly not.

My question today is why didn’t the Fed suspend short-selling to protect American savings accounts (like they did with Fannie Mae six weeks ago)?

By the way… The DJIA finished at 8456 Friday. On Wednesday the 8th I predicted 8400.

Brian Cork Was Spot On

This coming week will likely be better.

This is because its likely part of “the plan”.

On the other hand, most market insiders will tell you that support for the bottom of the market is actually at 7200. /3

Peace be to my Brothers and Sisters.

Brian Patrick Cork

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1/  Also known as a “Rag” writer and/ or rumor monger.

2/ So… A partial solution to shoring up a Democratic-inspired capitalistic marketplace is socialism?

3/ This is just an FYI.