The Treasury and the Federal Reserve wish to take all that nasty old mortgage and mortgage derived debt and make you and I, all of us, directly responsible for it. Paulson of Treasury is ex-Goldman Sachs CEO, one of the companies to be healed of its toxic paper. The Federal Reserve, despite its name, is actually a consortium of private banking interests. So these two parties, which have very large responsibility historically for getting the economy into this mess, now propose to effectively make indentured servants of us all to bail out their own industry.

They tell us that they, and Congress and government fiddling with the economy perhaps more generally, have made a royal mess of it. They have made such a mess of it that we must now give them carte blanche to do whatever they think best to fix it no matter how much of our money and our children's money they wish to take to do so. They tell us that they have made such a mess of it that either we agree with their plan or Else, and that the else will be upon our heads and conscience. We are being railroaded.

The manifold derivative instruments constituting this toxic sludge clogging up the system are doing so precisely because no one knows how to value these instruments. So the Treasury or some body stapled together for this purpose will presumably establish some arbitrary valuation. The decisions an actions cannot be questioned as immunity from prosecution for any actions taken has been placed on the table up front.

We are talking about $700 billion. Judging by historical precedent expect that to be in the neighborhood of an order of magnitude off. Fannie and Freddie alone have some $5 trillion of mortgages on their books. The derivatives nominal valuation is many times the value of the underlying mortgages in total. It is so large that and structured in such a way that there always were going to have to be losers. Which ones will the quasi-government banking interests allow to lose? I rather expect that the favorite financial institutions such as Goldman will not lose nearly as much as we the people will.

A economic czar is being set up to put you in debt indefinitely and destroy much of the last semblances of free markets. All this in the name of protecting you. Again. Just say NO.