Philman

Roubini Attacks Bailout, But Misses Boat on Regulation

Mike, you are right on!

Close down the Fed. Interest rates should be set by the market.

Close down the Exchange Rate Stabilization Fund, which was created in 1933 with the winnings from Roosevelt's confiscation of all the privately owned gold in America. That was an unconstitutional act, and all the gold should be returned to the descendants of its owners. Exchange rates must be set by the market. If America becomes competitive, it will sell its goods, and have a balance in trade, or a surplus, and there will be no need for the kind of government intervention that is happening now.

What Will Fannie / Freddie Mean for Monday?

If the stock market were not manipulated by the Federal Reserve feeding money through its dealer discount window and repo desk, every morning, this news would tank the DOW by 500-1,000 points on Monday.

Because the market is manipulated, however, I am sure that it will be flooded with cash by the Fed, in the morning, and they will be buying everything in sight, on the taxpayer's dime, while real investors are selling. The dollar will also be up tomorrow, and gold and silver will be down, giving us an opportunity to get out of stocks and buy precious metals.

The dollar is going to be collapsed, in the long run, by this, because it is incredibly inflationary. The government will now need to print $250-500 billion dollars, over the next 2-3 years, to compensate for all the defaults.

Grab Your Shorts, the Tide Has Turned

Good article!