"Fed unveils $800 billion plan to bolster lending, housing"This headline adorns the front pages of newspapers this evening. Is it just me or is the Fed getting these plans from cereal boxes at the White House breakfast ? Two or three pieces of cardboard and plastic for Henry and team to assemble in to something before another gruelling day of getting rid of all the money before the other guy takes office in January.
How about..."Fed unveils $800 billion plan to bolster mortgage payments, bolster the number of people who won't have to sleep under a highway overpass this Christmas, bolster job creation, bolster reduction of the National Debt "
"The financial markets are not working as we'd like them to work ... and this is an effort to address that situation," said Treasury Secretary Henry Paulson.
The Treasury still seems to be hanging on to the old goal of recreating the failed system it brought to life and which took down most of the world with it. If the financial markets are to work like he'd like them to work then it will do no good whatsoever to give consumers the chance to increase their already smothering debt exposure. The crisis in lending came after the Real Financial crisis; a dying economy, the deflation of the real estate bubble and loss of high paying jobs in manufacturing and Information Technology created the crisis. Consumers cannot borrow themselves back in to prosperity; this was what was encouraged by Greenspan and his successors with disastrous results. Now we are asked to accept that a repetition of the same mistakes will help to make things better ?
It has become obvious at this stage that the Treasury is working overtime to bankrupt the country before they are kicked out of office. There can be no other rational explanation for this. Nobody really knows for certain what Obama will do when he takes over the sinking ship in January and Paulson and Co are doing all they can to funnel the remaining taxpayer money in to the same system that robbed so much of it already. They are getting away with it with hardly a whimper from congress. Ron Paul has been practically the only opposing voice to be heard. I haven't heard of any Police cars arriving outside the Treasury to arrest the occupiers for gross negligence, theft of public funds or abuse of power. On the other hand, I have not heard of any credible impeachment hearings for Bush and Co for crimes against humanity, invasion of a sovereign nation or violation of the Geneva Convention either. But, on an encouraging note, Condi Rice was chased down a New Zealand St on the 26th of July by protestors attempting a citizens arrest for War Crimes, only to be saved by local Police. Rumsfeld has to be careful which countries he visits in case he is served with a War Crimes arrest warrant and poor old Henry Kissinger has equally tedious travel restrictions. But somehow, I doubt if any of the current Washington Mafia will ever hear the sound of a gavel.