axelrod608

It's Time for the Fed to Get Serious - Barron's

The Fed under the direction of Alan "Bubbles" Greenspin and his tsunami of easy, cheap, unlimited credit CAUSED this whole mess. Without his flood of money, more money, and even more money, there would not have been money available to make all those liar's loans and to buy all those bizarre derivatives on which the nation and the world are now choking.

The result is clear and obvious to any objective observer. The companies that grew fat on the flood of free money are a bunch of bloated dinosaurs. They are unsustainable. The financial companies and the retail companies we brought into the 21st century are (almost) ALL unsustainable. Corporations, individuals, families and government at all levels are drowning in debt. The idea that reinflating the credit bubble will get everyone borrowing and consuming again is ludicrous.

Albert Einstein - a pretty bright guy - observed that doing the same thing the same way and expecting a different result was a definition of insanity. The idea that the Fed can reinflate the credit bubble and fix everything is patently insane. Absurd.

Also, American financial institutions are holding some $130+ trillion in losses on their derivatives. The Fed doesn't have that kind of money. The Fed CANNOT fix this mess. It can only postpone the inevitable crash and increase the losses by the amount of additional money it pours into failing businesses.

Aretha Franklin perhaps put it best, singing "Who's zoomin' who ?" All this talk about "fixing" this mess is just the ramblings of born again zealots, whose faith in their economic theory is beyond question, uncriticizable. They are the economic 'terrorists' who are willing to destroy whatever they disagree with.

The only wise thing to do with the Fed is dismantle it. It is an unConstitutional construct that causes more trouble than it's worth and can't fix the messes it makes. Put it and the bloated companies it created out of their misery. Before they do more harm.