Quote from gnome:
Yes, but who ultimately ends up holding the bag and paying the bill?.... The US citizen through inflation and currency destruction.
As always... take the easy way out and FU*K everybody along the way.
Again the Fed refuses to do the obvious!
They should not risk the "Moral Hazard" of bailing out corporations while not doing the same for Joe Q Sixpack!
So - they should let the distressed mortgage holders clean out their closets and garages of old junk, and let them bring it all to the discount window.
There the Fed will exchange their "treasures" for cash.
The homeowners will no longer be distressed! They will use the cash to pay back their mortgages, the lenders will be made whole, and confidence restored to the financial system!
If the Fed doesn't do this, are they saying that "Moral Hazard" is only for the little people?
Or that these financial institutions have no morals anyway - so no threat of any "hazard" there?
