Tuesday, September 9, 2008

The FED & The U.S. Treasury Dept.

Occasionally, there is unvarnished and stark truth reported in newspapers about the very nature of the powers-that-be who claim to look out for the welfare of its citizens. I'm talking about the Federal Reserve System and its partner in crime...err, i mean the Treasury Dept.

Here is what the Financial Times said about our wonderful institutions, which in my opinion, they have it right. Pointing to the fact that private investors were reluctant to bail out Freddie Mac and Fannie Mae, the article claims that as a result the government had to play superman. Consequently, "the former investment banker [Hank Paulson] has in essence converted the Treasury into the US hedge fund of last resort (with the Federal Reserve as its prime broker)."

There you have it. Two sentences reveal the perverse aspect of institutions hailed as having saved the day. If anyone does not believes that, I have a bridge to sell them.

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