Welfare for the Rich part deux
NEW YORK (AP) — Wall Street rebounded sharply Tuesday after the Federal Reserve and other central banks said they will pump $200 billion into the financial markets to help ease the strain from the credit crisis. The Dow Jones industrials surged nearly 230 points.
The Fed’s latest move was seen as a direct boost to struggling banks by avoiding having to dramatically slash interest rates when the central bank’s policymaking Open Market Committee meets next week. Economists continued to be concerned about the unrelenting rise in oil prices and the dollar’s weakness, which contribute to inflation — and cutting rates only add to these pressures.
And what? Pumping $200 Billion into the financial markets doesn’t cause inflation? I gotta go dig out my old Econ text but I have this vague memory that this sort of thing aggravates the heck out of inflation. And will continue the downward pressure on the dollar. All that Chinese stuff at Walmart is about to become very expensive.
It’s the free, unregulated market that the conservatives love so well and it’s messing up the economies all over the globe. Greed is NOT Good.
http://girlinshortshorts.blogspot.com/2008/03/how-feds-tanked-our-economy.html
The bill for the $200 billion will be charged to the taxpayer, not to worry, super rich still OK.
This is a bad development.
Great link Brian, Miss Becky knows of what she speaks, being able to rite a loan and sell it to another party is the root of the problem, now who gets the bill for this ponzie sceme, That would be us. Not to worry super rich still OK!