Tagline? We don’t need to stinkin’ tagline!

I’m Fed Up!

So, I’m sitting here watching Bloomberg and Bernanke spouting off regarding Fannie Mae, Freddie Mac, the economy, etc.  Anyone else watching?

Over the last few weeks, I have been watching the markets intensely due to BearSterns (I have friends affected on both sides of the fence), foreclosures increasing, IndyMac failing, and now Freddie Mac and Fannie Mae.  In a way, I feel sorry for Ben Bernanke, as he’s between a rock and a hard place.  Granted, I’m not an economy whiz such as the people at the Fed, but somehow, I just don’t feel what he’s doing is right for the long term.  

Yes, the economy needs some stabilizing.  Commodities are way up, stocks are way down, the housing market crumbled, consumer confidence has eroded, and any rumors seem to become fact overnight, even if they aren’t true.  I noticed in one of the breaking news headlines on Bloomberg, Bernanke said that once the housing market stabilizes, the economy will bounce back.

Huh?

It doesn’t take a rocket scientist to figure that one out.  Right now, if anything stabilized in the economy, the economy may be considered bouncing back.

But what is it going to take to get the economy to bounce back?

It’s not the stimulus check that went out.  That was a band aid to most folks and really didn’t stimulate the economy.  It did, I’m sure, reduce some debt from those who really weren’t badly hurting, and those that were already hurting used it for necessities.  Now word is the Fed would consider another stimulus check. This is a bad move.  You do not just hand money out.  It reduces faith and value in the American dollar, which is already getting beaten up.  It also doesn’t help those hurting due to foreclosure, sub prime mortgages, lay-offs, etc.  Use some common sense here guys!  People are hurting because of bad economic policy way before Bernanke.  Cheap lending, poor risk analysis, greedy people and many greedy banks caused this.  We did it to ourselves!  It became the perfect storm.  

And all this happened before Bernanke.  He (and the current Fed) are trying to clean up the problems prior economic policies created.  And more than likely, they’ll create more problems down the road.  Do I have a solution?  Maybe in another post.  For now, I’ll just point out a few examples and another mess brewing.

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