The Rules Change
Posted on August 28th, 2007 by Kemp
The Fed is quietly panicking behind the scenes, but does not want YOU to know it. So they bend and change rules that likely wont make the front page news, or which are hard to decipher. Bernanke is a tricky guy. Greenspan simply panicked and cut. Bernanke operates in the back room area. The recent move was allowing Citigroup and Bank of America to loan up to 30% of their capital to their brokerage arms ($25 billion is the now stated “temporary” limit). This puts bank deposits at those banks at greater risk to market fluctuations. This is an aggressive move and a stealth one. It could easily backfire.
Click here to read CNN’s article.
Filed under: Social Mood, Economics
This is where most of us become equal. Paying me with money that is rotting will come home to roost. Soon I think I will get to specify what I get in payment as producers gain power over a ruthless consumer economy. I have not wanted dollars for a long time. A consumer market only has value if it is beside a producer market. There are few producers left in the US. It’s gonna be so bad….even the leaders are clueless. The whole bottom is rotted out. There is no boat left. The fed burned it.