Tuesday, March 17, 2009
That Bernanke, What a Joker!
So Bernanke thinks that levering up the Fed will be the answer. Fine, give it a shot. Just make sure that you are paying the proper price. There is only one answer for an economy (or anything) with too much debt: reduce the debt. Loans either have to be written off entirely or drastically marked down to reflect the inability of borrowers to repay their loans. Oh, and if the sellers of the junk to the Fed are just going to hoard the cash, the plan won't really help. There is a need to expand underwriting oversight and credit management staff. Lending money is just a tool, it is not good or evil. It has to be done responsibly.
FOMC meeting tomorrow, triple witching this Friday and a few more economic number this week.....let's be careful out there.
Posted by MK at 8:15 AM