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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Bindare_Dundat on October 07, 2008, 11:04:19 PM
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Today the Federal Reserve invoked “Emergency Powers” in order to further expand its reach into the economy. There are many inherent problems with central banking. There are even more problems with central management of the day to day workings of the economy. Seeing the recent devastation in the credit markets - which was mostly created by the FED - the FED has been trying desperately to contain the situation, but its traditional policies are just showing little to no results. FED solution: Expand our powers to include new measures we hope will fix the problem (Bernanke would even probably be happy with just finding a way to kick the can down the road).
This first meant the FED expanded from its stronghold in the commerical banking industry and overnight credit markets into micro-managing the investment banking industry, then the institution held asset markets (such as MBSs), and now what is perhaps the most pervasive expansion yet - the commerical paper markets. If the FED does happen to prevent a complete economic collapse (a la Soviet Union), then the pain we will feel when the problems do come to fruition will be significantly worse due to the unimaginable amount of moral hazard the FED is creating.
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Good Post.
Nobody ever asks where all this money came from.
Wait... There was one Man.
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Good Post.
Nobody ever asks where all this money came from.
Wait... There was one Man.
Yeah but once Obama sends 50 billion to the UN and another 50 billion to Georgia that'll help the economy and ....uh nevermind.