Deputy Secretary Robert M. Kimmitt Remarks at the Dubai International Financial Centre

Below is a statement by a treasury official showing what they have done and failed to stem the real problems at hand. They need to get a grip on reality and begin helping those that truly need it. HOW ABOUT PROSECUTING THOSE RESPONSIBLE FOR THE CURRENT SITUATION. This will never happen as they would have to prosecute and jail their contributors and friends.

For its part, the U.S. Government has taken a number of bold steps to stabilize markets; mitigate the systemic impact of a number of failed institutions; and address the underlying sources of market uncertainty. These measures include:

First, in early September, the Federal Housing Finance Agency placed Fannie Mae and Freddie Mac, the government-sponsored enterprises that are the largest sources of mortgage finance in the United States, into conservatorship. Under the conservatorship, Treasury will ensure that each company maintains positive net worth and can fulfill its financial obligations.

Second, central banks from around the world have acted together in recent months to provide additional liquidity for financial institutions. The U.S. Federal Reserve has established swap lines with a number of central banks to reduce pressures in global short-term U.S. dollar markets. Moreover, to further increase access to funding for businesses in all sectors of our economy, the Federal Reserve just yesterday launched a Commercial Paper Funding Facility, which provides a broad backstop for the commercial paper market by funding purchases of commercial paper of three-month maturity from high-quality issuers.

Third, in early October, Treasury implemented a temporary guaranty program for the U.S. money market mutual fund industry, which had experienced funding problems. This temporary $50 billion guaranty program offers government insurance to assure investors that these money market investments are safe and accessible. The Federal Reserve has followed up with its Money Market Investor Funding Facility, which supports a private sector initiative designed to provide liquidity to U.S. money market investors.

Fourth, with the support of Treasury and the Federal Reserve, the FDIC has temporarily guaranteed newly-issued senior unsecured debt of all FDIC-insured institutions and their holding companies, as well as deposits in non-interest bearing deposit transaction accounts. These actions are specifically designed to unlock interbank lending by mitigating counterparty risk. Regulators will implement an enhanced supervisory framework to assure appropriate use of this new guarantee. This important action, combined with the increase in the FDIC's deposit insurance from $100,000 to $250,000, will provide confidence in the banking system and encourage liquidity between banks in the United States.

Fifth, and what has attracted the most attention, Congress passed and the President signed a financial rescue package that includes, among many provisions, the authority for Treasury to purchase troubled assets from banks and financial institutions and also to inject capital into banks through a voluntary capital purchase program. In mid-October, nine of the largest U.S. financial institutions indicated that they would seek an aggregate of $125 billion, and Treasury has begun to approve capital injections into other institutions on a rolling basis.

All this government intervention and still we spiraling further into the recession and likely depression. The government obviously does not know what they are doing. All they are accomplishing is disavowing failure as an option, which in the real world it is, and aiding those that caused this problem to begin with. They need to look in the mirror as they are part of the problem not part of the solution.