The Fed is going to buy 600 billion, plus more, probably a trillion, in bonds in a bailout of the banks. At least last time people complained. A trillion in purchases means a whole lotta Wall Street activity. I guess it is ok to bail out banks if the Republicans are in charge.
This is a back door bailout, since the banks borrow money for free, and then buy bonds that earn 3%, meaning by the magic of compounded interest, taxpayer losses are gains for the banks. It's slow-cooking the frog.
Free markets do not need to be bailed out.
Wednesday, November 3, 2010
Election Results: Another Trillion Dollar Bailout
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