Some crisis links (10.23-10.24.2008)

The police nationwide prepare to crack heads (maintain order) on election Tuesday, according to The Hill (via News from the Underground).

Alan Greenspan admitted to having made a mistake when "…he…put too much faith in the self-correcting power of free markets and…failed to anticipate the self-destructive power of wanton mortgage lending." So, in the end it turns out the earth is not flat….

Mike Whitney's latest article begins by noting that the credit crisis has abated somewhat. This has come about because:

The US Treasury and Federal Reserve are now underwriting the entire financial system. The free market has been abandoned altogether. Everything from commercial paper to money markets is now backed by the "full faith and credit of the United States". Without that explicit government guarantee, the credit markets would still be frozen and the system would crash.

Nouriel Roubini (via Naked Capitalism) recently predicted that hedge funds will fail, thus forcing countries to close their financial markets.

Following the global trend, the Dow fell again, today, according to the New York Times.

The good news: The continuing failure of the McCain-Palin strategy which, by attacking Obama, amounts to an appeal to the GOP's racist base.

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