Socialism- U.S. Treasury Style

According to the WSJ's article New Loan Fix Is Unlikely the Last FDIC Plans Mortgage Guarantees; Lawmakers Consider Pressuring Reluctant Investors- the government wants to take losses on mortgages so that holders of mortgage based derivatives will be protected and will agree to a revision of the loan terms of the underlying mortgages. Spread the pain to the taxpayers, but deliver the gain to the greedy and the stupid.

According to Bloomberg, The U.S. Treasury is considering taking stakes in insurers as it prepares a new round of capital injections targeted at regional banks and other financial companies.

The nuclear assault launched by the Treasury and the Fed on the financial crisis will do very little to address the underlying problem - the systematic destruction of the working class by the system that has rigged institutions and rules to favor "investors" over workers, and "capital gains" over wage earnings. Until "wage earnings" are respected, and "investment gains" are taxed at a much higher rate than currently, and investors settle for much less returns on their capital and let firms invest more, the crisis will just morph. The bankers will just create one bubble to replace another.