The Federal Reserve Board continues to print money like no tomorrow as today the board pumped around $200 billion into the banking system. This is a very unwise course of action by the Fed as it simply delays banks dealing with their financial issues, and the Fed and the US government takes on the liability of bad bank debt themselves. This will only hurt the US economy even more so, and continues to make the dollar weaker against other currencies, further pushes oil prices higher, and contributes to inflation on consumer goods. The amount of foreclosures and bad bank debt is no where to getting to the point of being on a downturn trend, and the action of the Fed will only add to further added bad bank debt and foreclosures as it adds to the decline of home values, upside down mortgages, and probably unemployment. The inevitable has to happen: wealthy investers and corporations have to lose their shirts and go bellyup. And that has to include banks, even ones as noteworthy as Citigroup, who has mentioned in discussions in many circles as nearing the point of failure and bankruptcy, a development that would seem impossible only a short time ago.*****
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