Remember: Debt growth is the central factor in undermining the financial sustainability of our nations economic growth.
By Daniel at 26 August, 2009, 8:55 am
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What we have experienced since the dot com bust is ‘phony growth’ (not in all sectors) that was engineered and encouraged by the p***-poor monetary policies of the Federal Reserve via generous credit policies, rather than growth driven by real-sector performance. Since September 15, 2008 the day Lehman Brothers filed for bankruptcy, the banking sector has depended on the Federal Reserve to provide or guarantee the necessary funding for them to remain operational. The reappointment of Chairman Bernanke just affirms this administrations commitment to step in and not let any large bank or entity fail. Free market capitalism requires savings, investment and a sharing of profits with shareholders. It also requires failure and the results of such failure to function! Institutions who ran their companies into the ground should go bankrupt; in general troubled institutions must do a clearing out poor business models. “Too big to fail” can no longer exist the big banks, insurance companies must be broken up and allow this economy to recover.
The Federal Reserve has purposely taken trillions in worthless assets onto their balance sheet from insolvent banks in order to fraudulently portray the U.S. banking system as healthy again. The Fed is now faced with the very difficult task of withdrawing excess money without sparking massive inflation or driving us into a double dip recession. Personally, I don’t think they can pull it off because the underlying problems with the economy have not been addressed. If the ability of the U.S. economy to grow is impeded by substantial corruption, we will be in for a bumpy ride. The stock market is a giant casino where the house always wins.
ImpendingDoom
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