I just listened to several youtube videos of Jim Rogers. Here is his advice: - Bernanke should resign - Interest rates should be raised - AIG/Franniemac/etc should just go to bk versus getting bailed out. - Fed and central bank should be disolved. I wonder what would happen if...
Since dissolving the Pawnshop is impossible, how bout free floating the Fed Funds rate. Banning academics from the institution is a must given their history at the joint - I mean good lord, using taxpayer money to buy defaulting mortgages at "hold to maturity" prices should get Harvard and MIT to recall his degrees.
Trashing the Fed is not impossible. Painful in the short-term, but if government wanted to fix the actual problems of inflation and money supply, they would indeed trash the Fed. Truthfully, the government would never concede to giving up that much power to the people.
Jimmy Rodgers is absolutely right ! This bailout is a short-term bandaid, and a long-term nightmare. Best to purge the system of these investment banks, weather the storm (recession), and look to new Investment firms being born. Japan did this in the 1970's, and was very successful with it. We are just going to exacerbate the long-term pain, with this short-term placebo. Cash is king.....stay short (if you are able to).......the long-term effects of this mess and bailout will be catastophic.
Is it really an independent government enitity or is it more of a private sector creation disguised as government as a safety net? I don't think JP Morgan was thrilled to risk his money while organizing a solution to the Panic of 1907.
You are correct, the Fed was never a govermental entity, but a for-profit corporation from day one. When I said government, I was referring to the Fed. My mistake. There is no safety net from a middleman who exists by charging banks money. The Fed has no money of its own, it's all either from the government or from member banks. JP Morgan was just another crooked banker.