Bear Stearns Bailout = Socialized Banking (and I don’t mean that in a good way)
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The Fed cuts the benchmark Fed funds rate by 25 basis points. Is it enough? Or is it just more of the same thing that got us to where we are today — at the brink of a global rout of the dollar?
A quick summary:
- The greenback has lost the world’s confidence
- Oil is up (because the dollar is down)
- Gold is up (ditto)
- Commodities are up (ditto)
- Food is up
- The Euro is up (see above)
- The dollar is down below the swiss franc
- US based investments are crap … so we can’t raise capital
- Import prices are surging
- Here comes stagflation (inflation plus unemployment) because the Fed just keeps printing more money to bail out Bear Sterns et. al.
- Good news — exports are up, trade deficit down.
- Bad news — oil imports offset those gains.
You can cut the benchmark fed funds rate all you want but the real problem is bank solvency — and where is the capital for that going to come from (see above, “US-based investments are crap”)?
Heckuva job, Bushie. Only one thing left to do: hand it off to the Dems and then blame them when the world economy crashes.
Obviously, “conservatives” were right all along: government is the problem (Republican government, that is, they were projecting). Maybe they should follow their own political rhetoric and just get out of way of the forces of the “free market” and prove once and for all how that well model functions.