Tuesday, December 16, 2008

No Way Out

Cutting interest rate again, the Fed today set the target rate for loans that banks make to one another at a range from zero to one-quarter of one percent.

They are doubling their bets and, unless they are going to pay people to borrow and spend, they are all in. There's virtually nothing else they can do.

It is becoming increasingly clear that the government's financial experts -- the same folks who created the current situation -- have no idea of what they're doing or what they are dealing with. They're just thrashing about in confusion and despair, hoping that something will work before the peasants show up on their doorstep carrying pitchforks and torches.

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