Wednesday, December 12, 2007


This stuff ticks me off.

The Federal Reserve doesn’t want to “stigmatize” regular banks who are in a bind because of the mortgage mess. So they are opening what is really just another “teller window” so that banks can get new loans by bidding on the Fed's money. What this amounts to really is another way to subsidize stupid decision-making in the financial world.

Then again, it also shows there’s no such thing as free market forces, market discipline, and “invisible hands” when it comes to the biggest players who make real dumb decisions.

Follow me down below (same title) and I’ll explain in real simple terms what I think is happening.

- Mark

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