Asbytec

Why the Fed's Out of Control

Yes, I have heard all sides, too. Hyperinflation, deflation, depression, recession, and soft landing. I don't believe recession is a question, anymore. Depression might be debatable.

At one time I prayed for a soft landing, and that is still in the cards. I guess it depends on how quickly we act and what we do. I fear we won't act in time, other than Ben, who some argue is behind the power curve, too. Maybe so, but he's light years ahead of everyone else, including the EU.

It seems we all agree the Fed is not able to affect much change. Think Obama can? LOL I dunno, for me the election is a crap shoot. Far more important are the actions taken in the financial world.

And it's scary, and not related to Obama as president, the very Muslim world we dislike, fear, and are at war with might be providing the capitol we need. Ah, but that's a topic for another day...

The impression I got from Hank was exactly as axelrod said. My gut told me he wants to bail out his buddies with our money. I am furious and argued for a grass roots, bottom-up bail out.

Spend that $750Bn on the home owner and small business. Screw the big guys and their skewed credit markets. Let it fail, we'll all be better off straddled with less debt. But, no, the world economy runs on debt. So, Hank and co want to get right back to business as usual: funding the world economy using US consumers and their credit cards. I pray every day this will not happen, and I am hopeful that prayer will come to pass.

There are smaller, solvent banks that might be ready to step up to the plate and manage our money without risky mortgage derivatives. It's to late to argue the point, but give our money back to us.

Save our retirements and mortgages and our small business jobs. Let the banks compete to pay us interest on the money we have left over. As it stands, the big financials will now charge us interest on our own tax dollars! They've made money hand over fist selling our productive assets, our homes, and our gold. Now, they want to mismanage our tax money? Treason!

Sorry, got off the subject. But, I guess I don't have those same ill feelings toward Ben and co and I do toward Hank and the Treasury.

Wonder where the dollar is going in 2009. My bet is further strengthening along with continued volatility. Trade with China is already dropping off putting fewer dollars into the forex, billions or trillions of dollars are being lost...vanished into thin air...poof! And the Fed cannot plug that leak. Credit is log jammed and hedge funds are being paid out in dollars. There are a few other reasons I am dollar bullish. Everyone is bearish on the EU majors. You?