The Fed: Risky Business
source: http://online.wsj.com/article/SB122339483324611667.html?mod=special_page_campaign2008_mostpop
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- jimwiz3416
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Fed to Lend Directly to Companies for First Time Since Great Depression, Hints at a Rate Cut; Stocks Fall as Dow Hits 5-Year Low
The Federal Reserve said it will bypass ailing banks and lend directly to American corporations for the first time since the Great Depression, and it hinted strongly at further interest-rate cuts -- a cocktail of unconventional and conventional remedies for an economy whose prognosis is deteriorating rapidly.
The historic and potentially risky move of lending to nonfinancial corporations, the latest in a string of extraordinary steps taken by the Fed over the past month, carries the government deeper into the role of propping up private markets. Investors remain unconvinced any of it will work.
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- tags:
- Politics, Money, Wall Street, US Economy, 2 more
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AveryMoore
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Jimwiz3416
I think I'd modify that last sentence, "Investors remain unconvinced any of it will work."
It would be more specific if it said,
"Investors remain unconvinced any of it will work
- except for friends of the administration
- who just can't be "allowed" to fail
- and to the acute disadvantage of all those who need to seeA moratorium on foreclosures
A moratorium on offshoring jobs and profits
and a return to the saner days of prudent capitalism - the stuff that got us solvent in the first place.Investors, being opportunists, will wait until bottom of the barrel has been hit and then go back in. Unfortunately that bottom won't be hit until all the financial anarchy and legal irresponsibility of deregulation has been undone.
It may be time too to recognize humans as Limited Liability entities.
Why should humans alone face unlimited risk and zero protection from creditors? No one has bothered to explain this gulf in law and practice.
- 3 years ago
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AveryMoore
