When the threat of 'Socialism' is used to raise fear and anger in the US population.

Culture - Politics:

-  Like many people I wanted to better understand why the US Treasury presumes to have answers to fix the problem of a recent colossal banking collapse of its own making.

I also wanted to read an account of events from a 'left' perspective instead of relying on the American governments self-serving right-wing spin. 

Patrick Martin wrote an article in the World Socialist Web Site (WSWS) providing this mix of explaining the meaning of 'socialism' in the context of corporate greed and manipulation, and government protection of those at risk of losing their wealth.

The cynical use of a bailout of funds by the US Treasury is the tax base of which the working people expect to support job creation, schools, and general social infra-structure. Martin clears the air about socialism:

 The federal bailout of Wall Street—despite the hysteria of the House Republicans—has nothing to do with socialism. The measures could be more correctly characterized, not as nationalization of the banks, but as privatization of the US Treasury, turning over its vast resources to billionaires and speculators.

As Presidential election time draws rapidly closer in America both candidates are also scrutinized and dispel the myth of either candidate being elected with the hope of an agenda of social improvement for the poor sponsored by either Obama or McCain; Martin again:

Obama's denial of any connection to socialism is the truest statement he has made in the course of the campaign. He is, like McCain, a defender of the profit system and, if anything, the preferred candidate of Wall Street and finance capital. According to a report Wednesday in the Washington Post, some three quarters of the record $600 million raised by the Obama campaign has come from the wealthy and corporate interests.

It is remarkable that a presidential candidate should stand so brazenly in favor of maintaining the vastly unequal distribution of wealth in America—a country characterized by growing poverty, enormous unmet social needs, declining wages, and rising unemployment. It is equally noteworthy that Obama has sought to dispute the charge that he favors any significant redistribution of the wealth, as though that were a political sin.

One cannot know for certain how the poor will lose more basic comforts, and confidence in their elected officials with the the approach of the coming winter.

Nor can anybody speculate how the American financial system will be repaired.

But the wealthy will be fine.

The American government will look after its family of friends: after all society's morality has taken a massive drop and consequently concern for the under-privileged while never high on the governments agenda will now, undoubtedly, worsen.

The fear raised by government about 'socialism' is therefore a 'red-herring', or diversion, from the reality of future anti-social governance that will further disenfranchise the working poor.