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Portfolio Manager Axel Merk tells Bloomberg why Paulson's 'bazooka' is not calming the markets yet.
 
"U.S. Treasury Secretary Henry Paulson's ``bazooka'' may be intimidating the same investors he intended to reassure.  The powers Paulson won from Congress last month enabling a government rescue of Freddie Mac and Fannie Mae [...] may end up making a bailout more likely, say analysts and investors."

" 'It is the lack of clarity of what exactly the government is going to do, and what Congress is going to do, that is sending shivers' through investors,' said Axel Merk, president and portfolio manager of Merk Investments LLC in Palo Alto, California."

" 'To make this politically viable, why would the government even think about coming in junior to somebody else?' he said. "