"Jerry Kraus" <jkraus_1999@[EMAIL PROTECTED]
> wrote in message
news:dff87769-d3e5-40b6-b922-59b42a4afb5f@[EMAIL PROTECTED]
> http://biz.yahoo.com/ap/080311/fed_credit_crisis.html
>
>
> In his infinite wisdom, and in an effort to tem****arily prop up the
> collapsing Stock Market, that "Moron at the Fed", Ben Bernanke, has
> decided to print money like it's going out of style, and hand over 200
> billion dollars to the Banks based on nothing whatsoever in the real
> world, as we know it. While this is tem****arily -- very tem****arily
> -- pleasing investors, its effects will obviously be disasterous for
> the economy as a whole. While it will tem****arily -- very tem****arily
> -- hold off the final and total collapse of the U.S. banking system,
> it will, as a direct result, cause the final and total collapse of the
> U.S. currency, as well. Ah, well, there's no pleasing the right wing
> until everything is TOTALLY DESTROYED!!!!
That's almost true - apart from the bit about printing money and
hyperinflation.What the Fed are actually doing is exchanging Treasury
bonds
for mortgage- backed securities.This doesn't effect the money supply.
What they are doing is bad enough. By buying $200 billion worth of junk
bonds the Fed is exposing itself - and ultimately the US taxpayer - to
$200
billion of potential losses.
>
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