February 27, 2009 (LPAC)--The bank-bailout efforts led by Treasury Secretary Tim Geithner have been little more than a panic-spawned mass of chaos ever since even before they were first unveiled February 10, barely two weeks ago.  It's now well-known, as we were the first to report, that Geithner scrapped the plan his staff had prepared mere days before its presentation, and substituted an improvisation based on the notion that hedge-funds could be encouraged by government handouts, to buy up worthless "assets" from banks.

"Bailout, panic, and bailout again," as John Hoefle wrote.

Changes, re-explanations and reshufflings have followed one another almost on a daily basis ever since.  The "stress-tests" for banks which were featured in Geithner's Feb. 10 presentation soon had to be re-explained: banks which fail the test would not be placed in receivership; instead, they will be given federal money.  Next re-explanation: the government will get common stock, but not majority interest.  Next re-explanation: not immediately, but after six months!

"This is horrible," said Lyndon LaRouche.

"There seems to be complete panic and disarray behind the scenes," he continued.  "Because no one, so far, has been willing to bite the bullet on reality.  And we should say so. This is just more and more of the same old crap."

That six months' delay lasted about 24 hours for Citigroup, which got what is said to be its third bailout Friday.  But that doesn't include the undisclosed bailouts through the many other money conduits set up by Paulson and Bernanke.  AIG has been bailed out with $180 billion already, but yet another givaway will probably be made within days.

"There's panic and consternation and chaos of indecision," LaRouche said.  "This has to be recognized.  You can no longer continue with this business of futzing around and trying to wait for your problems to go away.  They're not going to go away."

In his Tuesday evening speech to Congress, President Obama called on Congress to do "whatever is necessary" to fix the financial system, but didn't say what it was, indicating that he had no agreement on it.  "This is the Pelosi thing," LaRouche said.  "It's still a Pelosi jam-up.  It appears that as long as she remains in the Congress, the United States is not going to take any steps towards survival."

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