Letters to the Editor
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The Market Melt Up .. and a Privatre Central Bank ...
Yep things are looking up . The market , house prices and all those new jobs !
The faster they bail out the economy , the faster the middle class falls behind. More profits land in the laps of the mega rich and the more inflation hits food and energy. Of course food and energy can't be counted towards inflation. The yatch fill up , the lear jet tires and the $1000 lunches are all costs of doing business in the Bahamas.
The fact is there was failure at the top . At the Federal Reserve. Alan Greenspan never saw a new fangled financial instrument he needed to regulate. Expansion of the money supply means more profits for the Federal Reserve. Back in 1994 when Alan was supposed to implement those tighter lending requirements things were tough , no wars , new taxes to bring down deficits and the remnants of a bond bust. Just how to boost the Fed's lagging take from the economy?
Fast forward to the late 90s and the money was sloshing all over Asia. Panick ! Sell those Asian stocks and get the IMF on the phone . Countries were spending too much on social programs!
2000 - Market meltdown in America ! There goes our credit scam ! The Afghanistan War isn't enough , invade Iraq ! We need more credit expansion! There could be deflation ! Alan push those variable loans and have the MIT grads create instruments , and derivatives and collateralize and bundle and parse.
Great job Alan , you've enriched the unknown owners of the Private Fed many times over.