Tuesday, January 13, 2009

Bernanke and Treasury: Give the banks your money

Give all of your money to the banks that have lost all of their money, because these paradigms of virtue, are the ones who know how to allocate your money. Just look at Citi, RBS or BofA today for an idea how well they will do.

Now Bernanke wants us to buy the Level 3 assets on the banks balance sheets? And Bernanke says that it is just too bad, but we have to give the money to the banks, even if this idea is, in his words a "disparate treatment, unappealing as it is, appears unavoidable."

Good debt is turning into bad debt, even faster than Bernanke can print it. That is what is happening to the public. And without jobs, this appears unavoidable, as unappealing as that is.

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