Celcius

With No Exit Strategy, Bernanke's Fed Turns to Lobbying

"This is why the Fed’s dual mandate should be simplified to only maintaining price stability."

I agree with this 100%. I think the FED should only be focused on keeping inflation below 0.5% to protect the value of the currency. The FED should not be involved in any of the bailouts. Corporate America should be exchanging debt for equity with their creditors. The same goes for all of the home owners in foreclosure.

The ABCs of the Fannie Mae / Freddie Mac Problems

This entire problem is the result of the Fed's failure to raise interest rates to cool off the housing bubble when housing prices were growing 1% to 2% faster then the total economy. Greenspan didn't raise rates to slow the tech bubble, so it burst and capital moved to property. The property bubble burst and now we have moved to commodities. Investing has turned into a follow the pack mentality which is creating one bubble after another. The Fed needs to focus on inflation only and in any form - stock, bond, property, commodity, etc. and raise interest rates to control its growth. The Fed has been too concerned about short-term jobs numbers than the long-term economic health of the economy. The SEC also needs to step up and regulate financial vehicles like SIV's & CDO's, and prevent new financial vehicles from being offered until the SEC can access the market risk and establish conservative capital requirements. Our total economy if far to leveraged which makes it very brittle during a contraction. In the end it is the tax payer who will suffer to repay the cost of market speculation on leveraged capital. We need leverage ratio caps from 1:2 to 1:5 on all purchases - stocks, bonds, and commodities. This also would significantly reduce price inflation.