Tuesday, March 25, 2008

"Too Big To Fail" Financial Suicide Terrorism

The Bear Stearns bailout by the Federal Reserve with its $29 billion loan and guarantee is one more example of the "too big too fail" bluff perpetrated on us.

The spoiled sense of entitlement to other people's money is matched by Bernanke's and the Fed's gullibility or complicity in the extortion.

Reject "The System" Trick

Bernanke and the Fed talk in circles about how the Fed does not intend to bailout certain investors but it does bailout "the system" and it might bailout certain investors while bailing out the system but that does not count as a bailout of certain investors:

"It is not the responsibility of the Federal Reserve--nor would it be appropriate--to protect lenders and investors from the consequences of their financial decisions. But developments in financial markets can have broad economic effects felt by many outside the markets, and the Federal Reserve must take those effects into account when determining policy." (Ben S. Bernanke, "Housing, Housing Finance, and Monetary Policy," At the Federal Reserve Bank of Kansas City's Economic Symposium, Jackson Hole, Wyoming, 8/31/07)
Do not be fooled by the claim that we "have to" save any company. There was a time when that company did not exist. The company might not be able to live without us, but history already has proved that we can live without that company.

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