The Fed is back at it again. The Federal Reserve will provide up to $540 billion in loans to help relieve pressure on money-market mutual funds beset by redemptions.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ajw94.nC0a5w&refer=us
Here is a link to all of the bailouts now set in place:
http://thehickoryhound.blogspot.com/2008/10/lets-add-this-up.html
In my opinion this is what is leading to Wall Street's meltdown. This only ends with the complete devaluation of our currency. They tell you these bailouts are necessary, but I am telling you that this is pushing us further and further into a corner. We are being boxed into a situation and limiting our ability to have flexibilty in the decisions that will have to be made.
We would have been better off to have to gone through a stagnant deflationary period, than what this is going to force upon us. We will still have to go through that stagnant period, but with a much weaker dollar, all that that entails, and we will be further in debt.
You need to read up on the Weimar Republic and what happens when you deflate your currency and thus bring about hyperinflationary pressures.
http://en.wikipedia.org/wiki/Inflation_in_the_Weimar_Republic
Here is Wikipedia reference to hyperinflation.
http://en.wikipedia.org/wiki/Hyperinflation
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Friday, October 24, 2008
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