Yet another move to try and loosen up credit markets, as the U.S. may take an ownership stake in banks. This is just another effort by government officials, here and abroad, to avoid The Great Depression II. Two economists, writing in The Washington Post, says that these efforts will work.

In the 1930s, nobody in the private sector could borrow, raise equity or sell insurance because everyone lost trust in everyone else. Uncle Sam stood on the sidelines and marveled at the chaos. But today Uncle Sam is saying, "Listen, if you households and firms are too scared to invest in each other or sell each other insurance, give us your money, and we'll do it for you. We'll pay you a sure return on the Treasuries and, if our investments and insurance sales do well, you'll benefit by paying lower taxes."

This may sound like socialism or state capitalism, but it's simply rearranging the financial furniture. As Americans have freaked out, Uncle Sam has stepped up. He'll continue doing so until we realize the sky is not falling. The $700 billion rescue authorizes the federal government to keep doing what it has been doing for the past year to the tune of $400 billion -- buying distressed assets at bargain-basement prices and selling insurance at high premiums. If all works out, Uncle Sam will make a killing. This would be great, given our government's real problem -- paying the long-term Social Security and medical costs of retiring baby boomers.

Read the whole thing. I hope they are right.

Politically, the crisis has just about killed any chance for the Republicans when the nation goes to the polls less than a month from now. New data shows, according to this story, that the GOP is losing ground in Senate and House races.

Hugh Hewitt sees a real downside to an Obama Administration coupled with a Democratic majority in both houses of Congress.

The argument about the disastrous economic policies being pushed by Obama must be made by McCain every day going forward even as the campaign continues to hammer Obama for his past judgment and future inclinations when it comes to allies and associates. Ayers-Rezko-Wright-Khalidi are part of a pattern that would certainly follow into the staffing of trhe vast federal establishment. The Daily Kos-Michael Moore wing of the Democratic Party wants its pages from the Plum Book, and the Pelosi-Reid staffers have all got their Assistant Secretary offices picked out. The Left is planning for a huge sweep, and a big party, and...Then what?

Obama-Pelosi-Reid will not be able to resist the massive tax hikes that have lurked behind their every scheme for the past 28 years since Reagan wrested the government from the last group of statists. The unions have wanted protectionism since Bill Clinton signed on to NAFTA. The environmentalists want the sort of global warming regime that will not merely curb but positively punish economic growth, and the anti-nuclear reflex within the Democratic Party is so deep that while Obama can make a few noises about the need for new nuke plants, none would begin under his tenure. Obama said last night that we need new oil exploration off-shore. Does anyone really believe that will happen? Energy shortages would go from a predictament to a policy overnight.

Scary thoughts.

George Will sees an Obama blowout on the horizon.

And, just when you think the news couldn't get any worse, a new study says we are losing the war in Afghanistan. It's a good thing General Petraeus is now running that show as well as Iraq, and a good thing that even Obama is committed to staying the course there.