It appears that plans continue, to bail out banks and mortgage lending houses. The Federal Reserve has quietly been pumping in billions, over $150B in this last quarter, and at least some of the bad paper will be absorbed through some variations of this criminal enterprise pyramid scheme, this shell game which we call 'capitalism'.
Ah .. to be born rich and a fool in today's America. America, where if you are really an idiot, and can't even make a sure thing like a baseball team into a profitable entity, you can still become President.
A couple of quotes from Galbraith come to mind.
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.
In the United States, the only respectable form of socialism is socialism for the rich.
Maddening, isn't it?
We are screwed.
http://www.forbes.com/...
The system of generating 'wealth' was always skewed in the past, but now even the rich bastards can't bail themselves out. In the 80's, Reagan bailed out the banks from the Treasury, today the government can only borrow from the Chinese.
There is about $250 billion of VRDOs outstanding and another $350 billion of Dutch auction structure securities. The buyers of these products typically are enhanced tax exempt funds, tax sensitive high-net-worth individuals and corporate treasuries.
VRDOs are under pressure because the bond insurers are under pressure, and the banks, as in auction rate securities, are walking away from the market and refusing to step in and buy when buyers are scarce. Liquidity has been one of the touted attractions of VRDOs.
I don't need charts and graphs to tell me this is going to end badly.
Very badly.
http://seekingalpha.com/...
"Too Much Money Chasing Too Few Commodities".
"The Fed has unleashed a speculative frenzy in commodities, and traders have lost faith in the central bank’s credibility."
The Fed is slashing the federal funds rate at a frenzied pace, to arrest a year long slide in US home prices, which if left unchecked, threatens to topple the US economy into a severe recession.
We are officially fucked, folks.
The underpinnings, the very things that hold up the value of the dollar, and the very faith in our economic powerhouse have rotted out from underneath.
We are going to see the modern day equivalent of the times my parents lived through as children. Thank Reagan, who started down this road by de-regulating the banks. Thank the Bush crime family, which has made it's fortune defrauding the American banking system.
updated to add some detail from the articles, and clean up 'bad syntax'