“4/03/2008, 5:54pm EST”
"Investment Firms Tap Fed for [Hundreds of] Billions" →
The government and the pundits want you to think that the worst is over, that the crisis is averted and the causes addressed. But the truth is so much more interesting. The linked article is worth reading in its entirety, but here’s the key point:
Big Wall Street investment companies are stepping up their borrowing a bit from the Federal Reserve’s unprecedented emergency lending program.
The Federal Reserve reports Thursday that those firms averaged $38.1 billion in daily borrowing over the past week from the new lending program. That compared with $32.9 billion in the previous week and $13.4 billion in the first week the lending facility opened.
You see, they’ve stepped up their borrowing “a bit.” No big deal, really — just $38 billion dollars. Of public money. Each day. To the very people who created the problem. Given by the very people who allowed them — indeed, happily assisted them — create the problem.
If I might whisper something in America’s ear: THE BURDEN THAT HAS RESULTED FROM IRRESPONSIBLE PRIVATE ACTS HAS BEEN SHIFTED ONTO THE COMMONS. THE “BUBBLE” HAS NOT BURST. IT HAS BEEN WILLFULLY SUSTAINED SO THAT THOSE PRESENTLY IN POWER CAN (A) MAINTAIN THE ILLUSION THAT THEY ARE COMPETENT AND (B) AVOID DEALING WITH THE CONSEQUENCES OF THEIR FAILED POLICIES.
Eh, never mind all that. The stock market is rallying! Of course, the stock market is naturally detached from reality, because it is based on people’s beliefs about reality, which are themselves radically detached from reality.
But no worries, people. It’s just the world burning. Sweet dreams.
UPDATE: How long before the banks are granted waivers on paying back their loans?
Never leave home without it.
