Quote:
Originally Posted by cykoe6
Actually what is happening is called corporatism and is quite common in Asia and Europe where the government has a very large influence over the private sector (think Japan).
Of course it flies in the face of everything that the US is and should be a about. Not surprisingly it was a HUGE mistake to allow the treasury to have a $700 billion slush fund to dole out to whomever is favored by the powers that be. The result is not very surprising with every corrupt state bureaucrat and incompetent CEO greasing their favorite federal politician to try and get a piece of the action.  |
I agree it was a HUGE mistake. There's a few differences in whats happening here over those countries. The most important of those is the Federal Reserve isn't the government. It's a privately company owned mostly by foreign entities. As it is right now this private company holds over 80% of all US home mortgages (probably more now after Citi.) and they are only halfway through the money. Now it's pretty obvious the other half will be used to by up commercial property and companies as they begin to crumble over the next 3-6 months. In addition now the Fed is asking to more or less become the Treasury and issue it's own bonds from here on out. Whats even crazier is that it could all have come to an end for 400 billion by our Government buying the Fed out. Instead they issued them 700 billion (that turns into 7.7 trillion) and let it all continue.