Hank Paulson is the crack dealer giving out endless hits to Wall Street to keep it high. Can't let it crash! Side effects are skyrocketing inflation!
+100 Crush average Americans, bail out imbeciles on Wall Street, have inflation absolutely skyrocket - Good job Paulson! Thanks Bernanke! Way to go on this piece of shit bailout package! Vote the bastards out in November if they vote for this legislation.
I'm glad oil is moving up hard it shows the people the only thing they get from this bailout, is massive debt and massive inflation
My question has been: Is the fed playing the market, or the economy? I got the impression that the emergency rate cuts early on were all about the market. I thought the fed's job was to help maintain a healthy economy. I don't see how manipulating markets achieves that. I always thought the market was an economic predictor. If that's true, than artificially changing the market through manipulation would not necessarily change the underlying problems. Is that correct? I'm amazed at the knee jerking when we're only 5% or so into a bear market, however, I keep hearing this is different, so I'll leave that to the experts. Would love to hear some input on the difference between the market and the economy, and the fed and treasury's roll in each, or both. Thanks
<b>wkj</b>: These are exactly the hard questions that need to be answered. Good luck getting a response. Society is inept.
Every once in awhile I play some XBOX with my young son. We are currently deep into The Force Unleashed, a new Lucas Arts title. The character has a force power energy bar, which gets zapped as you apply a Jedi or Sith force power. It will get drained down to (zero) and the after a short time it will recover to full force. You only hope the recovery is quick enough for your next evil combatant. The actions by the Fed and Treasury strike me as a similar action. Since this time last year, they have been hitting the $$$ FORCE button at various times, to support market declines after bad news. They no doubt hope that the market recovers just enough, so they can hit the FORCE button yet again when the next bad news cycle arrives. One might expand on the analogy and notice there are other $$$ FORCE capable parties playing in the game, which are applying their skills to attack parts of the market. You end up with SEC putting in a no-shorting CHEAT CODE to disable the $$$ FORCE powers of some of the evil Empire gamers. Eventually they are going to have to decide if they are going to rescue the hostages and fight the Emperor, or sacrifice the hostages to do battle with Lord Vader... but I digress... I hope you enjoyed the diversion. PS... May the $$$ FORCE be with you.
Nice analogy. . .but did you notice that this topic largely goes unanswered? Perhaps because even the so-called experts do not understand the ramifications wrt truly addressing this dilemma.gA fyi - the fed has now thrown the "kitchen sink" ($1Trillion) in their attempt to avoid what? One has to wonder what possibly could be their next trick?