Thursday, October 9, 2008

Robbing taxpayers to the tune of $700 billion does not change the equation

Mish's Global Economic Trend Analysis: Cancerous Activity of the Fed and Treasury: "Instead of attacking the cancer (the Fed itself), Bernanke is Pushing on a String In Academic Wonderland.

The problem is not a failure to lend, the main problem is there simply is no pool of real savings to lend. Furthermore, given rampant overcapacity and rising unemployment, there is no reason to lend even if the funding was available.

Robbing taxpayers to the tune of $700 billion does not change the equation."

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