The Federal Reserve is that elephant. The Fed has incited most of the economic problems that we're now facing, and they don't show any signs of stopping their bullish rush into oblivion.
Meanwhile the world is crying uncle. Banks are failing. States are seeking bailouts. Whole countries are on the verge of bankruptcy. Is the Amero just around the corner? Or will we have a global currency because of the so-called "failure of the free market"?
The Plunge Protection Team is powerless in the face of the market. The global money changers are washed up. Someone needs to throw them out of the temple.
The Fed Ventures into the Commercial Paper "Market"
For the first time ever, the Federal Reserve will issue commercial paper. The Economist reports that
America’s Federal Reserve is now said to be considering its own plan to take a flame to frozen interbank lending markets, and tackle the equally pressing problem of a shrinking commercial-paper market that could choke off funds to businesses. On top of further efforts to pump liquidity into the banking system, it might begin unsecured lending to banks and businesses, something that central banks rarely attempt and that the Fed has never tried before.You know...the Fed has done pretty much whatever it's wanted to in the past, and that's always kept the economy healthy, so what the heck?
It's Just One Big Party Over at AIG
A day or so after the government provided 85 billion dollars of bailout for the American International Group, they used half a million dollars of that to hold a very large executive party. Today, they're getting 38 billion dollars in
The Plunge Protection Team is powerless in the face of the market. The global money changers are washed up. Someone needs to throw them out of the temple.more bailout money. I haven't yet found out where their next party is going to be.
I wish I knew someone at AIG. It sounds like a great company to work for!!
Iceland: What Happens When a Whole Country Goes Bankrupt?
Forbes reports that
Iceland is getting closer to becoming the first nation to go bankrupt as a result of the subprime mortgage crisisWhy is Iceland the first potential casualty country? Forbes states:
Most currency investors are shying away from any exposure to Iceland, a country which has been hard hit by the lending crisis partly because it is so heavily exposed to the banking sector, which dwarfs the rest of the economy.Has anything like this ever happened before?
Did Obama and McCain Just Have a Debate? I Couldn't Tell
The Tuesday night debate was a blamefest and a condescension on the part of both candidates to those everyday Americans in attendance. "The economy is the fault of the last 8 years of Bush failure." "No, it's the fault of Democrats who cozied up to Fannie Mae." "I warned the Treasury Secretary 2 years
In a case of "if they can do it, why can't we?', the states of California and Massachusetts have clearly illustrated the fact that unbridled social welfare programs cause the need for bailouts.ago about the problem." "No I did." All the while they talked past the people in the audience. It was supposed to have been a town hall meeting. Couldn't they have had a conversation with the people, rather than saying "Alan, that's a great question..." and then bloviating about almost nothing?
Imagine how much more productive the debate would have been if Ron Paul had been one of the candidates. He, far more than the two Establishment candidates, would have identified with the members of the audience, and would have been able to honestly lay out the schedule of mistakes and blame that got us to where we are now economically.
When are we going to get ourselves out of the "lesser of two evils" rut?
Global Interest Rates Drop, but Stocks Continue to Fall
Is the Plunge Protection Team running out of magic? In coordination with nearly every other central bank on earth, the Fed reduced interest rates again. Asia Times Online scoffs at the Herculean failure. The problem is
a monster that seems to get worse, and more importantly, laugh away all attempts to contain it, with every passing day.California and Massachusetts Ask for a Bailout
In a case of "if they can do it, why can't we?', the states of California and Massachusetts have clearly illustrated the fact that unbridled social welfare programs cause the need for bailouts. If California and Massachusetts weren't always teetering on the edge of welfare-engineered economic oblivion, they wouldn't be facing such hard times right now.
Actually, I've got a much simpler solution to the problem. Why should they have to balance their budgets? The federal government doesn't have to. They should just pass a law that the banks have to loan the states short-term funds!! As much as they want!!! Isn't that how it works?
. . .
By the way, I have some Monopoly money I can throw in. That would probably help just as much as everything else that's being tried.