Welcome to the Gre'08er Depression

Welcome to the Gre'08er Depression

http://www.bloomberg.com/apps/news?pid=20601087&sid=afIu492CyWMw&refer=home

Make no mistake about this folks, this is a depression era move.  Paulson, Bernake and Schumer are no less than a triumvirate of fools.  Ironically, Bernake claims to be a student of the depression.    There were so many bailouts that the government is forming a government agency to bailout companies.  As I read this article I seemed to remember a similar venture from the Great Depression.

http://en.wikipedia.org/wiki/Reconstruction_Finance_Corporation

There has been another corporation like the Reconstruction Finance Corporation which was used in the late 80’s as follows:

http://en.wikipedia.org/wiki/Resolution_Trust_Corporation

Whatever the acronym, whatever the intent, the purpose is singular.  Let no one try to dissuade you from understanding.  The goal of any such organization is to pass the buck on to the taxpayer.

As far as finance goes, this is a hail mary pass which hurls the debt in the air and hopes the market has time to recover to land the touchdown.  Such a venture did work in the case of the Savings and Loan crisis of the late 80’s, however, many believe the Reconstruction Finance Corporation served only to prolong and worsen the Great Depression.

This latest crisis is by all accounts much worse than the Savings and Loan crisis and as far as the amount of debt shouldered per capita, could easily be a gre’08er depression than that of the 30’s.

Buckle up, we’re in for a wild ride.

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