Post by grizzley on Jan 15, 2009 1:05:36 GMT
I can't decide if Bernake is shooting it or smoking it. For a University Professor who has, we are told, studied the Great Depression, Hellicopter Ben is running wild. Intead of letting the market liquidate the malinvestments, Bernake and his soon to be former college, Hank Paulson, have done everything possible to shoreup Paulson's good buddies with taxpayer money. Try this from the "Daily Reckoning"....
"Bernanke also expressed support for the idea of creating a so-called bad bank that would allow the government to buy financial assets in exchange for cash or equity."
Here is where we laughed so hard we thought we might damage our midriff.
Create a 'bad bank?' Is he kidding? The world's full of bad banks already - banks that did just what Bernanke is proposing to do; they bought financial assets, notably mortgage market derivatives, for cash. Now, they turn to the taxpayer, desperate for a handout to keep them from going under.
And the baddest bank of all? Next to the Central Bank of Zimbabwe it's the U.S. Fed. What's it doing? It's buying trash and paying cash. In this way, the mistakes of rich bankers are transferred to the people…via the people's bank - the Fed. Of course, the people don't know what's going on. And they won't notice either when the Fed eventually unloads these toxic assets - in the dark of night.
"Bernanke also expressed support for the idea of creating a so-called bad bank that would allow the government to buy financial assets in exchange for cash or equity."
Here is where we laughed so hard we thought we might damage our midriff.
Create a 'bad bank?' Is he kidding? The world's full of bad banks already - banks that did just what Bernanke is proposing to do; they bought financial assets, notably mortgage market derivatives, for cash. Now, they turn to the taxpayer, desperate for a handout to keep them from going under.
And the baddest bank of all? Next to the Central Bank of Zimbabwe it's the U.S. Fed. What's it doing? It's buying trash and paying cash. In this way, the mistakes of rich bankers are transferred to the people…via the people's bank - the Fed. Of course, the people don't know what's going on. And they won't notice either when the Fed eventually unloads these toxic assets - in the dark of night.