Paulson’s argument, which is shared by leaders of the Fed, is that even when the emergency Fed lending program for investment banks goes away, financial players will assume they would be bailed out again in a crisis. That means they may be more willing to take risks that could threaten the financial system and thus require greater policing.
Sphere: Related ContentFor those of you saw the Star Trek movie, you know that Admiral James T. Kirk was the only one ever to beat the Kobayashi Maru. He did it by reprogramming the computer - he changed the rules. Look for a similar attempt by those now taking the test. Currency controls, restrictions on investing, limits on positions held in commodities, etc. etc.
Sphere: Related ContentThe statistic did not meet what economists consider the classic definition of a recession, which is a retraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if modestly.
Sphere: Related ContentDriven by a painful mix of layoffs and rising food and fuel prices, the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s.
Sphere: Related ContentBe it ever so devalued, $1 trillion is a lot of dough. That’s roughly on a par with the Russian economy. More than double the market value of Exxon Mobil Corp. About nine times the combined wealth of Warren Buffett and Bill Gates. The Banksters get to have their cake and eat it, too.
Sphere: Related ContentMore government oversight, just what we need… I say let the banks deal with it themselves, and hopefully they will learn their lesson.
Sphere: Related ContentThe US Federal Reserve is examining the Nordic bank nationalizations of the 1990s as a possible interim solution to the US financial crisis.
Sphere: Related ContentThe Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system. BUT THIS WON’T SOLVE THE PROBLEM,PEOPLE!
Sphere: Related ContentSince 2003 34,156 people have lost their homes to repossession in the Cleveland area, according to Case Western Reserve University, and the pace of those losses is accelerating. The new year is barely two months old and so far there have been 1,857 foreclosures in the Cleveland area.
Sphere: Related ContentThe verdict is in. The Fed’s emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed. The Fed is now singing from a different hymn book, warning of the “possibility of some very unfavorable outcomes”. Inflation, the worst of all taxes is not one of them.
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