Moon Kil Woong

Global Markets in Review: Risk Aversion Weighs on Stock Markets

Why should banks lend when they get free money from the government and interest from the Fed risk free. Can you blame them for dumping a trillion dollars into the Fed's deposit window. If there is a depression blame the Fed and the Treasury. They have fixed this market to 1) deflate 2) bankrupt the country while bailing out their friends.

Congrats, looking back you can say they did their job admirably in the style of Bush Jr's philosophy. If you are wondering what philosophy the worst President in history is it's this: Give your friends everything they wantand be damned with everyone else. You can see this in every decision he made as president.

At this point in time even Greenspan would look like a saint compared to Bernake and Paulson. They have ran the country into a recession, deflated the US, and destabilized faith and trust in our monetary system by arbitrarily dumping citizen's money on whoever helps their bank friends even if they are not a financial institition (like giving $85 billion to AIG so they can spend $80 billion to pay Goldman Sacs on their CDS contracts betting on mortgage defaults made by Goldman when Hank Paulson was CEO). No wonder TARP recipients don't want to tell you what they did with the money. However, the market is not stupid. We may not be Sherlock Holmes but we still know about simple deduction ($85 billion is hard to hide even if it's a few wire transfers).