Day: March 30, 2008


The Nationalization of Wall Street, by John Ing

Federal Reserve Chairman Ben Bernanke once said: “By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper money system, a determined government can always generate higher spending and hence positive inflation.” The Fed slashed short-term interest rates six times in six months to 2.25 per cent from 5.25 per cent despite the U.S. Department of Labor …


Odds ‘n Sods:

Home Equity Loans as Next Round in Credit Crisis Don’t miss one key point that was buried near the end of the article: “…many people added second loans after taking out first mortgages, so it is impossible to say for certain how many homeowners have multiple liens on their properties.” Clearly, there are a lot of home buyers (I’ll refrain from calling them home owners, since it is the bankers that still hold controlling interest) that are getting “upside down” in their mortgages. Without a doubt, much more jingle mail is coming, as property prices continue their downward spiral.    …


Jim’s Quote of the Day:

“Although we give lip service to the notion of freedom, we know that government is no longer the servant of the people but, at last, become the people’s master. We have stood by like timid sheep while the wolf killed – first the weak, then the strays, then those on the outer edges of the flock, until at last the entire flock belonged to the wolf.” – Gerry Spence, From Freedom to Slavery