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Fed’s $200 billions, Bond Industry, Banks, Where can the Fed go from here when this doesn’t work?

Mar 12, 2008 Market Outlook

The Fed delivered a 200 Billion Dollar death blow to the economy, and in so weakened the Federal Reserve and guaranteed a finance collapse. This effort which is a cloaked bailout gives money to failing financial institutions and moves the debt that exists between the Bond industry and it’s creditors and places it on the Fed. It demonstrates to the world that 1.) We really do think we are invulnerable, and can spend money as we like and not reap the consequences but even more 2.) It completely destroys the credibility of the U.S. overseas markets. This and a rate cut next week will be perceived as panic.

There is absolutely no mechanism to repay this debt, (which ultimately is done by consumers and business spending money and taking out loans) consumers still are not spending and wont and even the simplest minded will recognize this as not making sense, the housing market will continue to deteriorate because it was overvalued and the economy crippled fatally by the inability to control fuel Oil prices will most likely collapse. Now we can officially blame this mess or at least the pathetic mismanagement of it on the current Administration, and yes they have the nerve to blame the Democrats for raising taxes? (FYI GS has been a faithful conservative for 44+ years until G.W. Bush)

Just were can the Fed go from here when this doesn’t work? You got it folks, nowhere. Not only no were but hopelessly no where, this is perhaps the stupidest fiscal move I can remember in my short lifetime

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