Henry Paulson, the Secretary of the U.S. Department of Treasury, recently announced a plan to purchase equity stakes in large public financial institutions to stem the tide of bankruptcies and failures brought on by the credit crisis. By buying shares in big banks, the government is essentially providing much needed cash to stabilize the companies and provide for some liquidity and credit stimulus. This is just one of many actions announced in an attempt to diffuse the credit crisis. Equally busy are Ben Bernanke and the Federal Reserve. Paulson swears …

Patrick Byrne, CEO of Overstock.com (OSTK), was one of the lone voices sounding caution while the market was steadily marching upward to record levels. In good times when everyone in the market is making money, few will listen to the radical iconoclast in the corner warning of an impending end to the party. Contrarians are often seen as party poopers. The financial press regularly ridiculed Byrne for his passionate crusade against naked short selling. Many perceived his actions as a desperate attempt to save his own company from short sellers. …