This blog has explained that the US financial system is on the verge of total collapse, regardless of a few up days on Wall Street.  Today, it is joined with the same pronouncement  from Willem Buiter.

Things are critical. Unless the banks start lending in normal volumes very soon, this recession could indeed become another Great Depression. We cannot wait for the banks to find their juju. The government may have to take it to them.

Secretary Henry Paulson appears to be completely inept.  Just a week ago Paulson proclaimed the financial system was solid and strong and, in fact, he didn’t even need the second $350 BILLION from TARP.  Today, he decided that the funds were needed right away and, further, added another $800 BILLION of loan guarantees.

So far, the US government has granted or guaranteed up to $7 TRILLION in monies.  This indicates that the financial system has collapsed.  Further, the US government is not getting adequate ownership of the entities as monies are awarded.  Meanwhile, executives are pulling out BILLIONS to reward themselves from their incompetence. This is corporate welfare on steroids.  This is the raping of the American taxpayers and their future heirs.  This is the result of the greed and corruption that has been American capitalism for decades.  This will result in the breakdown of the social structure and there will be riots in the streets of America.

America is doomed.