The Federal Reserve was set up by bankers, for bankers, and it has served them well. Out of the blue, the Fed came up with $12.3 trillion in nearly interest-free credit to bail the banks out of a credit crunch they created. That same credit crisis has plunged state and local governments into insolvency, but the Fed has now delivered its ultimatum: there will be no "quantitative easing" for municipal governments.
On January 7, according to The Wall Street Journal, Federal Reserve Chairman Ben Bernanke announced that the Fed had ruled out a central bank bailout of state and local governments. "We have no expectation or intention to get involved in state and local finance," he said in testimony before the Senate Budget Committee. The states "should not expect loans from the Fed."
So much for the proposal of President Barack Obama, reported in Reuters a year ago, to have the Fed buy municipal bonds to cut the heavy borrowing costs of cash-strapped cities and states.
GO HERE to read more.
4 comments:
The only smart thing I herd in the past few years.
I guess it is just okay to bail auto manufacturers and banks. The most visible tax dollar is your local tax dollar. When local and state governments can't provide for the people anymore, you will see some screaming.
Come on folks. The money is created out of thin air.
look at it this way if the dollar is to lose value for foreign markets maybe it will force the USA to become more self sufficient and get more industrialized again .... one can dream cant they
Post a Comment