The Dow is up more than 200 points this morning on the news that the Fed will use all those unsaleable packaged mortgages as collateral to lend even more money to ease the problems caused by too much bad debt. Make sense?
It's weakening the Yen, which helps many people who are already rich. Will it help the economy? I don't know of course, but the practice of increasing the money supply to bail out a sagging economy hasn't worked for the Japanese for over a decade even though they have been offering borrowers 0.5% interest for a long time.
What do I know, I'm a boat bum, not an economist, but I know that crude oil is up to nearly $108 a barrel and that many banks are still solvent only because Moody's and S&P are keeping some bond ratings artificially high.
But don't worry, be happy. The Government knows what it's doing and is here to help.
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5 comments:
How long before the dollar completely crashes into oblivion?
I'm sure our wise and experienced leaders will prevent that. (gag)
You are a boat bum. You don't know nuttin' :)
It's getting ugly in my parts. Lot's of people are losing their jobs. More and more people will lose their homes. The foreclosure problems have at least a year to go. The mortgage losses still have billions to go for the lenders, and those who purchased mortgage back financial instruments.
Hold onto your hat, or that bottle in the brown paper bag. The ride, believe it or not is going to get bumpier.
MrSleep
Your last paragraph says it all.
And yet people are still buying the story. I really don't understand anything any more.
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