Bailout FAIL

by Azreel | September 29th, 2008

So, HR 3997, the “Bailout” bill failed to pass the House.  But that didn’t stop the Fed from increasing its dollar swap arrangements to $620 billion.

You read that right, Congress said no, but the Fed responded by printing over 600 billion more dollars.  Inflation be damned.

“It’s liquidity front-and-center, while simultaneously determining with the [U.S.] Treasury which institutions have to be saved, which it can let the private sector dissolve, and at the same time begin the process of buying distressed debt,”

Felson said. “One goal is lowering the LIBOR spread, and this should help.”

Felson further added that conservatives are concerned about the Fed’s balance sheet and resources, and the impact the liquidity measures will have on inflation. Inflation is a valid concern, Felon argued, but at this juncture the paramount concern remains the maintenance of the financial system.”

I call bullshit. 

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