Rush Limbaugh's Morning Update: Surprised?

A financial research and consulting firm out of Boston -- Celent -- has investigated claims by Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke... the claims justifying the massive federal bailouts of the financial industry. The title of their report, "Flawed Assumptions about the Credit Crisis," gives you a little hint of what they found.

The report found "contradictions" between what Paulson and Bernanke told us was happening in the financial markets and what conditions really were. In mid-September, Paulson claimed the financial system had "seized up" -- that credit markets "froze." That was the basis of the $700 billion bailout. But, the report says, "the freezing of the credit markets that Secretary Paulson cites is not visible" in the data.

Secretary Paulson also said that blue-chip industries could no longer write "commercial paper"; another fact that is contradicted by the data.

I'm not going to go through the entire report here -- I don't have time -- but I want to make two points. First, this spending spree of trillions of dollars represents the biggest, most expensive, most intrusive action by the federal government in our lifetimes. Yet, it is a private group -- not the Drive-Bys -- who bothered to investigate the claims, and in this case found "contradictions."

I told you at the time that we were likely being snookered, that this could be the most elaborate, most expensive election-year October Surprise in history. And now, it appears the data supports that brilliant conclusion that you heard only here.

Read the Background Material on the Morning Update...
• AIM: Fraudulent "Credit Crisis" Paves Way for Economic Disaster