Here’s an interesting interview with banking industry expert, Bert Ely, who says that the banking industry can handle this mess internally and does not need subsidies.

Advocates for a rescue plan this week point to a seizing up of credit markets, reflected in elevated inter-bank lending rates, as reason for action. Some economists are unconvinced.

On the subject of the continuing bailout saga, I offer the following quick thought: Ignore the Drama. It will soon pass, once the robbery of key financial assets, by connected billionaires, is complete. What’s happening now in th US, used to happen routinely in third-world countries, like Brazil. As such, the history of the financial markets during government induced panics in those countries, should provide a good framework for developing a profitable investment strategy during the current US panic.

Apparently, Paulson misses his days at Goldman and Bernanke is jealous of other sovereign wealth funds, so together they have both created the largest US hedge fund, with potential assets of over $700 billion.

If you need a prime example of the height of insanity that our financial markets have reached, look no further than the KBW Regional Banking Index (KRE).

What a game! Today’s development in the continuing financial saga, proves again the ultimate fragility of our entire financial system, but alas it’s good news for those who enjoy playing the investment game

The UK bans short selling, major pension funds refuse to lend shares to short, naked shorting rules in the US start taking effect… and stocks skyrocket? Coincidence?

What the government is essentially doing in its current “bailout” schemes, in my opinion, is simply stealing money from US shareholders and citizens. This sort of thing used to happen in third-world countries, like Brazil, where for example during the reign of their President Fernando Collor de Mello, citizens bank accounts were essentially confiscated overnight and replaced with less money the next morning.

In the same vein, Paulson and the rest of the US Government, are simply taking advantage of short-term liquidity issues to confiscate US companies, and wipe out shareholders in the process overnight. Yes, they haven’t actually gone into citizens bank accounts yet, but is there really a difference? And could we expect anything different when we hired a Treasury Secretary, whose former job was running Goldman Sachs?