Topic: Economics
A Boom Time for Vampires Even a toothless vampire can still lap at the neck of this economy.by Jahfre Fire Eater
(Libertarian)
Friday, March 28, 2008
No one knows the future but I don't see any reason to believe the FED will ever turn away from inflation or begin raising interest rates.
Iceland's actions are far to little, far too late.
The FED's 'bandaid on a ruptured jugular vein' approach to economic countermeasures will only rip away more of the vein when they rip loose.
In my discussion circles there are still a lot of folks who believe in the Keynesian/Bernanke/FDR approach to staving off recession, namely massive amounts of liquidity from thin air followed by massive amounts of government make-work spending programs. Until this destructive mindset is vanquished from popular lore through education and hard experience we can only follow the path of economic ruin that we are on.
None of the current central banking actions can change the fact that losses are occurring, wealth is evaporating, solvency is dwindling, spending is shrinking, purchasing power is fading and people are hunkering down. The FED and Congress can apply liquidity bandaids but they cannot stop the losses. They cannot undo insolvency. Diverting capital from its best usage in the free market to make bandaids for public display is only hurting our future...even if they decorate them with little cartoon characters. This is the only long term result from government manipulations such as have become the norm with the popular, Keynesian approach to economics.
The vampires are licking their chops, waiting for the victim to weaken significantly. The boldest can't wait patiently. Recently JP Morgan showed how a real vampire swoops in under the cover of darkness and turns a weakened victim into a corpse before the fleas and other parasites on the body even know what happened. They need a show case to set the stage for what is to come. Sure the Bear Stearns fleas and leeches squawked when their host died. They thought they were entitled to its blood for a long time to come.
Now as the credit crunch begins to stack up failed deals the fleas and leeches are beginning to realize that they have no leverage when a vampire claims their host. The Bear Stearns parasites were thrown a bone for only one reason. They were in the right place at the right time. When Lehman Brothers or Morgan Stanley or any of the next wave of insolvent institutions begin to weaken, the vampires will have at them and no one will squawk.
Jahfre Fire Eater
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2008 Jahfre Fire Eater, all rights reserved.
Published: Friday, March 28, 2008
Last modified: Friday, March 28, 2008
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2008 Jahfre Fire Eater, all rights reserved.