August 30, 2007
-- by Dave Johnson
As I observe the professional reaction to the "mortgage crisis" and the credit crunch - coming from the bursting housing bubble - I am struck by the degree to which everyone is looking entirely to the Fed to bail out the big players. It is an expectation. It is the understanding of the financial class that they will be bailed out by the government - at the expense of the taxpayers. Again.
The stock market swings violently up or down depending on what they think the Fed might do. Everything depends entirely, entirely, entirely on the Fed -- and not on the supposedly "free market." Everyone is so used to the government stepping in and bailing out the fat cats. It happened after the S&L crisis. (In fact, it was a feast for the Republican-connected.) It happened when the Long Term Capital Management hedge fund got into trouble. So they are sure it will always happen. And they continue the financialization and securitization foolishness.
For decades massive debt has been building up - both on the government and the consumers' books. In fact, Democrats keep reducing the borrowing when they are in office -- Johnson balanced the budget, Carter submitted balanced budgets and Clinton was actually paying down the debt. But then Republicans get in and cut taxes on the rich, and the borrowing just SOARS! No one denies that we are in an unsustainable situation that has to lead to crisis eventually. But every time a reckoning comes near the Fed bails out the fat cats, and a new and bigger wave of financial foolishness commences.
Imagine if you were sitting at a blackjack table, and every time you ran out of money the manager of the casino said, "It's OK, we'll cover it for you." What kind of blackjack player would you be? Would you be a careful player, managing your money, ready to step away from the table when you lost your limit? Or would you just bet more and more and more, until the casino manager came over against to tell you not to worry, he'll cover it for you? You wold act exactly like the financial professionals are acting.
The Fed will bail out the fat cats again, which means that when the reckoning finally does come it will be a tsunami that realigns the entire world order.
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Will The Fed Bail Out The Fat Cats Yet Again?
This has been simple answers to simple questions.
For whom do you think the Fed works? You? The American people?
Mr. Powell , Sir. . .
The American Government does not work!
Our system is broken to the degree that Congress has more obligation to protect the stock market than they do inspecting cargo arriving at our ports all across the country.
TERM LIMITS......WE NEED TERM LIMITS . . .
And, each candidate for President should have to permit to a psychological profile before being able to participate in the election.
There would have been many SIGNALS about George Bush has that occurred. Well, it did somewhat with his missing the piss test when he was in the guard.
And, tho many felt the Rather story ended his career and it did, the story was true. The Bush family have had A THING for Rather since the shouting match with the Sr. Bush several years ago.
And, with the present field of D candidates and the power of THE CLINTON name, we are again going to be in serious trouble if the Senator from New York gets the nomination. Hilary Clinton is the most aggressive POWER GRABBER in politics and to subject the country to more CLINTON MENTALITY is too big a risk.
Jim Anderson Stivers, Blog Activist
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