Friday, 16 January 2009

Does anybody believe these guys?

“They need to do something dramatic,” -- Why? If we don't we could be in for the next Great Depression? What happens if we don't do something dramatic? It looks like we are heading that way whether they do something or not. History shows that intervention only makes it worse. (Smoot Hartley Act, every gov't program enacted during the 1930s)
A big new initiative “is going to be necessary,” -- Necessary? So, that you can save failing banks. Save the people who took stupid risks, and now give the bill to taxpaying citizens. So the financial institutions can hold the power structure in place and keep people spending money and getting into debt.
Fed Chairman
Ben S. Bernanke called for “a comprehensive plan to stabilize the financial system and restore normal flows of credit,” -- Uncle Ben, wants to stabilize things. What has he stabilized? Anything? What plan could he possibly have now, after 2 years. Do you think people in '29-'30 realized they were sliding into a Depression?
“Buying toxic assets from banks is a good thing because I think confidence comes back into the banking system when you are certain -- or more certain -- that you have no time bombs ticking,” -- Oh, it is good to take money away from savers (tax paying citizens) and give it to spenders. (Greedy banksters). Yeah, confidence is really going to come back then.
“We must act with urgency to stabilize and repair the financial system,” -- Yeah, urgency and repair. The problem is that the financial system is broken. You have to get people to keep playing games at the casino, the problem is no one wants to play anymore. We don't want to spend, we just want to keep what we have.
“Doing something sooner rather than later to instill confidence is important.” -- Yeah, just keep doing things, and doing things. Eventually something has to work, right? The way capitalism works is that the market clears itself of the excesses. You start over and rebuild. By "doing something", you don't let the market funciton. People don't know how to plan. How long are you going to keep "doing something"?

These quotes are from a another Bloomberg article today. Does anybody believe these statements? How long are we going to hear them?

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