When you have already spent irresponsibly more spending makes no sense at all

The Federal Reserve Bank of America is in the process of doing exactly the opposite of what needs to be done to restore the US economy.

Common sense says that when you have already spent irresponsibly, the solution is to spend less not more. But that is not what our Federal Reserve is doing. They have decided to buy up mortgage backed securities from irresponsible banks at a rate of 40 billion dollars per month indefinitely! That is correct. Banks made bad loans to people that could not afford them, bundled those loans into larger lumps of bad debt, until the whole system crashed. Instead of allowing those lenders to default and go out of business, our great enabler, the private Federal Reserve Bank is keeping them afloat and essentially paying the salaries and bonuses of the people who acted irresponsibly. In so doing, they are devaluing the dollar and distorting the market. President Obama supports this banking welfare system.

Reporter Ben Swann explains the mess in this excellent video.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: