What goes on behind the scenes: at the Treasury and Fed?

Here is a very different article from what I would normally post. The article talks about the mysterious origins of the bailout remedy, asking some tough questions and drawing on history to provide some potential conclusions. (Click here to skip the intro and read the article)

Article Introduction (Via Economic Principals Blog)

How deep has been the opposition between the Federal Reserve Board and the US Treasury Department these last fifteen months? Fed chairman Ben Bernanke and Treasury Secretary Henry Paulson have presented a generally united front. But what goes on behind the scenes? What of their staffs? The sheer opacity of Paulson’s initial plan to buy and hold troubled securities, and the clumsiness with which it was presented, has yet to be explained. What was the process by which it was developed and internally reviewed?

Ten days ago it appeared that it was UK Prime Minister Gordon Brown’s idea (doubtless crafted for him by Bank of England Governor Mervyn King). True enough, Brown boldly and confidently tackled his banking crisis at its root. A cartoon in the Financial Times depicted leaders of other industrial nations following him along in a cheerful dance. There followed the standard paeans to John Maynard Keyes.

Click here to read about the mysterious origins of bailout remedy