Heck of a job, Bonkers Ben and Turbo Timmy.
By Daniel at 16 October, 2009, 9:51 am
The Fed has succeeded in blowing bubbles in the equities and commodities markets by stealing almost all interest from savers and handling out huge amounts of money to their cronies. All this has been done while ignoring the collapse of credit on Main Street and the Tsunami of bad loans in all classes all across America. Now we have foreclosures running at a rate of 3.6 million per year, over 2500 of the 8000+ banks in the US now rated D or F, an insolvent FDIC, and a soon to be completely insolvent FHA on top of an already insolvent Freddie Mac and Fannie Mae.
The end “accomplishment” is that the Dow has crossed 10,000 and now has PE multiples of around 122 which are the highest by far in the history of American stock markets. Gold has crossed $1,060 which is further damaging the jewelry business. Oil has more than doubled from $34 to $75 per barrel this year which is now costing consumers and businesses around $500 billion more in energy costs than at the end of last year. And to top it off, the dollar is now plunging due to a complete loss of confidence in the Federal Reserve and US Treasury.
Meanwhile, the US national debt is about to top $12 trillion, housing prices are continuing to plunge, commercial real estate has fallen in price by 40% over the past 18 months, empty stores and buildings are sitting without tenants all over America, earnings at almost every single company are either falling or nonexistent, and unemployment has now reached 23% - only 1% point below the all time high ever recorded in 1932 at the height of the Great Depression.
No wonder there is disagreement among the FOMC board members.
AP.
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