Today in a speech that mostly restated the obvious, the Fed chairman showed that he is not qualified to run a grade school bake sale and said the tightening of credit standards, if sustained, “would increase the risk that the current weakness in housing could be deeper or more prolonged than previously expected, with possible adverse effects on consumer spending and the economy more generally.”
So the Chairman of the private Federal Reserve thinks it is a bad idea for banks to write loans to people who have some hope of making the payments? Holy fucking shit am I the only one who sees a problem with this? What we have here is a world class fuckaroo that is just starting to unravel and the Fed is enabling the very people who created it!
Basically our economy IS the $3.5 trillion in government spending right now. The rise in the money supply which is caused by unsustainable borrowing and consumer price inflation of 10%, with the wave of a Fed magic wand infaltion is transformed into healthy growth by adjusting money supply figures to remove the effects of inflation using a fairy tale called “personal consumption expenditure” of 3% rather than the real price infaltion rate of 10%. Like magic cancer is now a healthy growth!
Meanwhile in a rare moment of clarity G Dub in his speech explaining his proposal for sub prime relief said:
“It’s not the government’s job to bail out speculators or those who made the decision to buy a home they knew they could never afford,”
I guess law of averages says he will say something intelligent at some point.
Go back to sleep America, go back to voting in American Idol. The Fed, and your President are on it.
