| It's about-
1- Bailing out the Lenders more than it is about bailing out the borrowers, economically speaking. Propping up the financial sytem.
2- Buying votes. A lot of the mid American Republican faithful are caught up in this.
It will help keep the USD down too, which might not be such a bad thing given the current mess the US is in with it's trade and debt figures.
If it doesn't work, and property prices keep going down, there will be one hell of a mess. The bailouts are not infinite, unless the USD is debased.
Risky stuff. The stockmarket continues to ignore risk, and defy gravity. I won't be touching it with a bargepole.
Both the Bush administration and the Fed have got it horribly, horribly wrong. I hope I'm wrong, but this could take years to unwind. The next Presidency is looking like a poisoned chalice to me. Maybe the Dem's should think long term and run someone unelectible (Obama?), and leave the Republicans to sort out their own mess. But that ain't politics.
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To err is human. To blame someone else is politics. |