The ongoing saga of saving the TBTF Banks while leaving the real economy to wilt on the vine continues as Bernanke pegs inflation at 2%.
In excerpts from recent articles by Jesse’s Café Américain the scheme is made oh so clear.
“The move by the Fed is more of a stealth bailout of the banks and creditors in the financial sector than it is a remedy for the real economy. The markets are still not efficient or safe, and the economy is being managed for the benefit of the money masters.
So I expect this move by the Fed will merely serve to precipitate further economic damage that will eventually lead to a strong public reaction and constructive change, albeit via a highly troubled and sometimes dangerous path….
There are few real investors in these markets anymore.”
“Stocks rallied hard off the FOMC statement and subsequent press conference. The intraday commentary on this is here.
So what next? Somewhat discounted in the paper party is the dull fact that Ben and the Fed are driven by the dire state of the economy, despite their cheerful words to try and calm the markets.
And monetary policy is a blunt instrument, ill-suited to stimulating an economy that is broken and in serious need of rebalancing and reform.
Nothing good will come of this, but it may take some time to work itself out.”
Related Post: To BIg To Nail. & Steve Keen: The Greater Depression
Original Post: Keep Bailing