Bernanke Abolishes Corrections and Bank Losses
September 22nd, 2007Via: Safe Haven:
By lowering rates by .50 points the Fed not only surprised the stock market, which forced shorts to close out positions and caused people to react to the news and create an outsized rally, but sent a very powerful message: The Fed will not allow the market to have a pullback of any sort. The Fed will not allow banks that made bad loans to go under and simply doesn’t care about inflation or the value of the dollar at this stage of the game.
I know many people reading this are excited to see the market go up, but you need to step back and think about things for a minute. Why did the Fed do what it did yesterday? What the Fed did is dire, because it is lowering interest rates in a huge dramatic way when the DOW is only 1.7% off of its all-time high and inflation is accelerating. Not even Alan Greenspan did anything like this.
This is one of the most shocking things I’ve ever seen in the markets.
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Billionaire Jim Rogers before the rate cut in a must see Bloomberg video:
“Every time the Fed turns around to save its friends on Wall Street, it makes the situation worse if Bernanke starts running those printing presses even faster than he’s doing already, yes we are going to have a serious recession. The dollar’s going to collapse, the bond market’s going to collapse. There’s going to be a lot of problems in the U.S.”
I’m waiting until one euro costs $1.50 before I make like Nelson Muntz from “The Simpsons”. (“HAW-haw!”)
The scumbag Bernanke is saving all his buds at the banks. Ron Paul cornered him a couple of days ago:
http://www.minyanville.com/articles/bernanke-ron+paul-testimony-wall-street-america-dollar/index/a/14185
Robert Toll, the McMansion builder, just fondly referred to Bernanke as his “boy”.