Wednesday, January 11, 2012

The Fed lies again


Jan. 11 (Bloomberg) -- Ben S. Bernanke is signaling his willingness to double down on a three-year bet that’s failed to revive housing, showing the extent of the Federal Reserve chairman’s effort to wrest a recovery from the deepest recession.
from Bernanke Doubles Down on Fed Bet Defied by Recession: Mortgages

Stripped of the Ministry of Truth's doublespeak, what Bernanke is doing is buying up mortgage-based derivatives while the underlying economy collapses.  So, now  the favored few will be able to go out and buy real stuff with their bogus debt infused with Bernanke bucks, but they aren't going to spend that money on what the underlying economy needs, i.e. basic infrastructure. So, the underlying economy will continue to collapse (but even faster now that prices of fundamentals will climb), and Bernanke will wait a while and buy some bogus debts again.  THIS is Mammon's "free market" in action, serving the rich at the expense of the rest of us.