Financial News

17 09 2008

Not much time to write at the moment, but after reading Pastor McAtee’s observations, I’ll throw out a couple of my own:

1) The media uses “the Fed” and “US government” interchangeably to the point where its hard to figure out which entity is doing the bailing out at any given time. The “Fed”, or Federal Reserve Bank, is a privately owned bank. (For a primer, see Money, Banking, and the Federal Reserve from the Mises Institute, transcript of the video here.)

2) While the failing institutions are reaping their just desserts, the paranoid cynic in me wonders if this is a leveraged power play by the “Big Boyz” to buy up the smaller players at bargain prices. You see the privately owned FED has unlimited money, thus they can encourage limited runs on the banks, then buy up the failed institutions with freshly printed funny money. (Think Wal-Mart as a bank).

3) Not having much money myself, I don’t have much direct exposure to a bank run. I recommend only keeping enough in the bank to cover the checks you’ll write in the current month.

4) It is sort of funny how remarkably clue-less the presidential candidates are on this whole scenario which is unfolding at breakneck speed.

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