Not Good

This is from Lew Rockwells site its Ron Paul writing about what the fed is doing. Others are not aggreeing that what the fed is doing is making more money, inflationary, as compared to swapping good treasury notes for garbage securities. Either way he is correct when he says the bad debt is being removed from wall street is put onto the taxpayers.


...The implicit guarantee from the Fed is quickly becoming explicit, as those institutions deemed "too big to fail" are bailed out at taxpayer expense. Wall Street made a killing during the housing bubble, reaping record profits. Now that the bubble has burst, these same firms are trying to dump their losses on the taxpayers. This approach requires more money creation, and therefore debasement of all dollars in circulation.


The Federal Reserve, a quasi-government entity, should not be creating money or determining interest rates, as this causes malinvestment and excessive debt to accumulate. Centrally planned, government-manipulated economies always fail eventually. The collapse of communism and the failure of socialism should have made this apparent. Even the most educated, well-intentioned central planners cannot plan the market better than the market itself. Those that understand economics best, understand this reality...
Read it all