Oh how the Street begged for it, this latest round of *additional* money printing just announced by the Fed. It’s their lifeblood, this irrational exhuberation off which masters of the universe (Tom Wolfe) thrive. So, like a dog returning to its vomit or a crack whore to the pipe, Bernanke just can not stop himself. It’s not that this Keynesian crappola works. It’s failed worldwide but Ben doesn’t know what else to do. He’s hooked.
I read where this variation will be Fed buying of mortgages, to drive down interest rates. What, like another 1/2 point off the 3/1/2 percent current rates is going to fix the housing market? But wait, Bernanke says the lower rates WILL cause people to buy homes because the homes sold will create jobs. Gee, in the real world the jobs come first and then people buy homes and furniture to put in their new home.
Unfortunately, the Fed doesn’t do real world or Austrian economics. So the pumping accelerates just in time to pimp for Obama. There’s an election you, know. The little intellectual elite hopes this helps someone besides Goldman Sachs and the Oracle of Omaha. Obama may get a little rise out of it as the market probably will inflate (Dow up over 200+ yesterday). It comes down to what helps the average American . . . the illusion of a healthy stock market vs $5 gas and $5 bacon. Does the Ben even know about $5 bacon? Probably not.
Until Mitt is inaugurated this January, the money printing will surge and the Bernanke bonfire will rage. In the first 100 days of the Romney administration, this disastrous dollar deflation of the Fed must end and Bernanke must be given his pink slip. His vanity will survive. No so sure about Barack.