The United States is coming out of Phase I of the present economic crisis just at a point where a new and greatly popular President will take office. Where will the economy take us?

Just like the request for the TARP legislation, Congress seems pushed and harried into a decision not best thought out by the parties concerned. Here, we offer an alternative.

Welcome to the Great Depression 2.0: this century’s climactic reaction to the “irrational exuberance” of the last half century and the mindless credit system of the United States and indeed, the world.

In 1994, Nick Leeson, a trader in Baring Bank’s Singapore office began trading in derivatives based on index futures. His unauthorized actions were the cause of the collapse of Barings Bank, one of Britain’s oldest financial institutions, founded in 1762.

The Federal Reserve, in what can only be described as an extremely rare weekend action, boldly moved Sunday night to provide lower the discount rate from 3.5% to 3.25%, along with additional actions to provide cash to Wall Street investment houses that may be financially squeezed. The unique action intended to prevent a spreading credit crisis from crushing the American economy.

Early this morning, the Federal Reserve Bank lowered both the market rates and discount rates in an emergency move to stave off an anticipated major sell off in the markets.