Despite all the hoopla accompanying what is now called the TARP (Troubled Asset Relief Bill), its passage will not be enough. This was foretold in the last hour of Friday's stock price deterioration after the House passed the so-called “bailout” bill resoundingly.

Instead of the bailout approval rekindling renewed optimism, the credit crisis has spread to Western Europe during the weekend.

Like the U.S., individual members of the Eurozone are pouring tons of liquidity into the breach to keep their economies from tipping into the vortex of recession.

Bold steps, like the Netherlands, Belgium and Luxembourg taking over the privately held Fortis Insurance Group, are being implemented to keep their domestic economies from imploding. However, even under the pressure of deteriorating conditions, the European Community refuses to unify in a regional approach.

The European Central Bank has as yet refused to bring their interest rates anywhere near America's 2 percent level, hanging in at 4.25 percent.

In fact, it's likely the U.S. will drop one-half of one percent at the next Fed meeting in October or even before.

Unexpectedly, despite the lower U.S. interest rates, huge surges of foreign money are flooding America's government issues, increasing their value, while bringing the yield curve down. This indicates that America is still considered the world's safest haven, even in bad times for the U.S.

I agree with Barron's Weekly that what is needed before this crisis abates is an immediate cut in interest rates, more leniency in mark-to-market accounting and greater injection of capital into America's banks.

Morris R. Beschloss writes a regular blog on mydesert.com. He can be heard on KPSI Radio 920 AM from 8 to 9 a.m. every Friday and on KGAM Radio 1450 from 9 to 10 a.m. Saturday, seen on KESQ Channel 3, and on Time Warner Cable TV Channel 111.