Tuesday, August 05, 2008

The Fed is No Friend of Mine

Or yours, either. Unless you happen to be in Wall Street or a financial institution.

Today, the Fed made the decision to keep a key interest rates unchanged.

Why Gina, you ask, what does that mean to me?

Well, it means that instead of looking out for the majority of the citizens of the United States, the Fed kept their friends in the banking and financial industries happy campers.

Don't believe me? The Dow was up 331 points today.

You see, by choosing to raise interest rates, the Fed would have taken a step to fighting the rising and alarming inflation that is affecting all of our pocketbooks.

However, it needs to keep printing money to lend to all the banks and institutions such as Fannie Mae and Freddie Mac, and higher interest rates make that a lot harder. They are doing it under the guise of "stablizing" the real estate markets, but they are only interested in stablizing it for certain people. Namely the ones that have lost record amounts of money gambling (and losing) on bad loans. And I'm not talking about John Q. Public.

Those sub-prime loans and most of the shenanigans that went with them were acutally illegal, and yet here we are, suffering so that they can keep their jobs. They should all be prosectued, not protected.

So, no relief for you or me, but lots for CEOs and the like. And, the rub is that all these extraordinary measures to save these people who have the Fed in their pocket may not even work.

So thanks for nothing, Mr. Bernanke. I'll keep thinking of you as my grocery bill skyrockets, and yet I get less.

Where is the outrage?


Chris said...

That's why I keep coming here...you force me to remove my head from my ass and face the harder issues. At times. I'm with you all the way! ;)

J at www.jellyjules.com said...

I'm so friggin tired of everything in this country being for the benefit of big business and wall street. Ugh.

Ted said...

It's like we've been kicked so much that people feel powerless to do anything. Alas, it's just another tale in that popular series "The Rich Just Get Richer."

~Sheryl said...

The part that really frosts my cookie is the part where they want to pretend to bail out John Q Public who signed up for an ARM. Now they get to keep their lower interest rates (so the bank won't lose any more)they have decided to extend the lower interest rates for those poor people. Silly, frugal me applied for a fixed rate because I knew better. Where's my break?