Secretary of the Treasury Henry Paulson pleaded with Congress to salvage the U.S. economy with $700 billion to bail out banks and big business.  Congress rushed through this $700 billion bailout with such rapidity, it apparently didn't take time to specify restrictions on how the money was spent.

Some bailed out banks simply used this cash infusion to buy other failing banks to enlarge their economic empires.

Fear sent shudders through the depositors and stock investors at the nation's biggest bank, Washington Mutual.  $16 billion was withdrawn in 10 days by frightened depositors.  J.P. Morgan and Chase obtained this over 100-year-old bank a day or so after it was hastily closed by federal banking authorities.

Washington Mutual had granted a tremendous number of sub-prime loans.  They were giving mortgages without thorough credit checks of positive proof that the borrower had a job where payments could be met when the principal monthly payment was added to the many interest-only loans.

Glenn Hendler of New York City, writing in the New York Times Letter to the Editors September 24, had this to say:

"From now on we should view anyone who says he believes in the 'free market' with the same attitude that we reserve for an adult who says he believes in the tooth fairy.

"Any long-term solution to the current situation must abjure 'free market' ideology and acknowledge that our long experiment in loose regulation without serious enforcement has been a failure.

"Only then can Congress evaluate whether a $700 billion bailout will actually help the nation as opposed to simply rescuing Wall Street."