Aug 10 2007
Fed Reserve Bailout of Greed Begins
Well, well. That didn’t take long. As we’ve predicted all along – the cavalry has come to the “rescue.” This morning we learn that the Federal Reserve has bought $19 Billion of mortgage backed debt. The is flatly a bailout of reckless lending practices, Wall Street greed, and large hedge funds who have made a ton of money – and now don’t want to pay the piper for the inordinate risk they have taken.
Folks, that’s $19 Billion created with the flick of a button – injected into the financial system (and into the money supply). More importantly – this bailout has diluted your hard earned Dollars by the same $19 Billion.
If the trend continues – kiss the Dollar goodbye – and say hello to the $5.00 cup of coffee, gallon of gas, and carton of eggs.
World central banks are following suit. As we have always warned, the debasement of ALL paper money inevitably continues until it devolves to it’s true value — that of the paper it is printed on.
Consider this your (non-necessary) pat on the back.