There's another proposal that came out of the meetings that was so revolutionary - so, out in left field, that no one saw it coming! The proposal? Oh, yeah, have Wall Street bail itself out.
Have the fat cats that have been playing with all this money and basking in their greed for lo these many years, finally have to pay the piper for their debauchery. Everyone knew that the market has been inflated for quite some time and that there were going to need to be corrections. But no one did anything about it.
Borio and Lowe(2002) as written by Kevin J. Lansing in his Federal Reserve Bank SF(FRBSF) Economic Letter dated 14 November 2003... also argue that emerging bubbles can be more readily identified if central banks look beyond asset prices to include other variables that signal a threat to financial stability. Specifically, they find that episodes of sustained rapid credit expansion, booming stock or house prices, and high levels of investment, are almost always followed by periods of stress in the financial system.
HMMM...I'd say this is STRESSS!!!!! wouldn't you?
That same letter, which holds the subtitle -Should the Fed React to the Stock Market?
He quotes Borio and Lowe "If the economy is indeed robust and the boom is sustainable, actions by the authorities to restrain the boom are unlikely to derail it altogether. By contrast, failure to act could have much more damaging consequences, as the imbalances unravel" (p. 26).
Borio, C., and P. Lowe. 2002. "Asset Prices, Financial and Monetary Stability: Exploring the Nexus." Bank for International Settlements. Working Paper 114. http://www.bis.org/publ/work114.htm
This was 5 years ago, 700 Billion dollars earlier and GW and the Republicans chose to do NOTHING!
I think that there must be consequences for those for whom this proposed bailout is to benefit. Exactly what those consequences are, I am not sure as I am not privvy to the inner workings of the system. I do believe in the No golden parachutes, though - you've already gotten yours. (that's a consequence? Boo hoo)
Guess you'll have to struggle like the rest of us peons to make our retirement accounts add up and hope that we have enough to carry us through old age.
It is heartening to see our representatives finally show some backbone, but in the end it may all just be for show and we, the lowly taxpayer, end up footing the bill again for the excesses of the greedy who have taken their money and run...
Borio and Lowe(2002) as written by Kevin J. Lansing in his Federal Reserve Bank SF(FRBSF) Economic Letter dated 14 November 2003... also argue that emerging bubbles can be more readily identified if central banks look beyond asset prices to include other variables that signal a threat to financial stability. Specifically, they find that episodes of sustained rapid credit expansion, booming stock or house prices, and high levels of investment, are almost always followed by periods of stress in the financial system.
HMMM...I'd say this is STRESSS!!!!! wouldn't you?
That same letter, which holds the subtitle -Should the Fed React to the Stock Market?
He quotes Borio and Lowe "If the economy is indeed robust and the boom is sustainable, actions by the authorities to restrain the boom are unlikely to derail it altogether. By contrast, failure to act could have much more damaging consequences, as the imbalances unravel" (p. 26).
Borio, C., and P. Lowe. 2002. "Asset Prices, Financial and Monetary Stability: Exploring the Nexus." Bank for International Settlements. Working Paper 114. http://www.bis.org/publ/work114.htm
This was 5 years ago, 700 Billion dollars earlier and GW and the Republicans chose to do NOTHING!
I think that there must be consequences for those for whom this proposed bailout is to benefit. Exactly what those consequences are, I am not sure as I am not privvy to the inner workings of the system. I do believe in the No golden parachutes, though - you've already gotten yours. (that's a consequence? Boo hoo)
Guess you'll have to struggle like the rest of us peons to make our retirement accounts add up and hope that we have enough to carry us through old age.
It is heartening to see our representatives finally show some backbone, but in the end it may all just be for show and we, the lowly taxpayer, end up footing the bill again for the excesses of the greedy who have taken their money and run...
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