USA Becomes USSRA
That saying came to mind when I heard that Republican Treasury Secretary Henry Paulson and Republican Fed Chairman Ben Bernanke will come together with Democratic congressional leaders Nancy Pelosi and Harry Reid to devise a "comprehensive" approach for solving the crisis.
The details of the "comprehensive" approach are not entirely clear, but it seems that the general idea is (in addition to bans and restrictions of short sales) for the government to buy bad assets from the financial institutions, as well as creating a insurance for money market mutual fund assets, similar to the one covering traditional bank deposits. These proposals amount to massive government subsidies of banks and other financial institutions, making it non-surprising that stocks in general and financial stocks in particular soared.
Like the Fannie & Freddie bailout, this will mean another step towards making the government the dominant mortgage lender, something which made Nouriel Roubini refer to the USA as being more like USSRA (United Socialist State Republic of America), and Jim Rogers call America "more communist than China" (see video below).