icandoitdon

Fed Policy: A Case of Excessive Expectations

aother fed apologist....

bernake limited his own options by cutting rates far too aggressively over the last 9 months. he panicked, letting himself be conned by a bunch of wall street crybabys who always think cheap money is the solution to their self-created problems.

cheap credit does not solve an inabiity/unwillingness to lend by thingly capitalized financial institutions or borrow by insolvent consumers; and it does not turn bad paper into good paper. bernake's actions have contaminated the dollar and contributed directly to inflated commodity prices. they have also tranferred capital from the pockets of savers to the financial institutions responsible for bringing the system to the brink of collapse. those savers include the foreign institutions that just happen to fund our debt, without whom we'd have a virtual economic collapse.