I’m pissed to say the least…  First Bear Stearns and now the Macs.  Why do I as a taxpayer get the privilege of helping these overextended companies stay in business?  It is bad enough that the Fed keeps “printing” money, which keeps the interest rate low and provides liquidity to an illiquid financial industry.  Each time they inject money into the system they are effectively stealing from each and everyone of us who holds US dollars.  

My original intent in this entry is to write about the gold standard… well, actually the lack of it.  Ever since we have been off the gold standard interest rates have swung wildly, and the boom / bust of the economy much more severe.  

When the “tech bubble” popped in 2000 interest rates were lowered (money supply increased) and it did nothing to prop of the tech market, but went to the housing market, which is now in drastic decline.  

The fed is what we need to be talking about in the news.  Instead people in the media are talking about speculators and manipulation of markets.  Today the SEC is preventing naked shorts on financial stocks.  Well, why do people short a equity in the first place?  Answer: They think it is going to drop in value.  Is there a reason financials are dropping in value?  YES  So, instead of looking at how we got to this point we are going to find a scapegoat (speculators) and continue what has been done over and over again.  What new regulations will be in place after all this is over?  Will the US gov’t now be in the housing and banking industries?  So, if automakers start to fail is the fed going to open the discount window to them as well?  As a taxpayer I’m excited to be loaning money to failing companies.