Bears are pounding their fists on the table declaring outrage over the Fed’s complicity in manipulating asset prices at the expense of, well, the Bears. Everyone knows that pandering to the upside is in the best interests of protecting the business process and free enterprise, you know, the thing that got us here. If all goes well, the inhabitants in the middle of the economy, now living in small huts, will have the same guaranteed opportunity not to participate in the guarantee from loss that the top gets. But at least it is a guarantee and it is only reasonable since it is at the heart of what the Fed and Treasury stand for, inequity.
As I wrote about back in the first week of December, Ben and others at the Fed and Treasury have entered what they hope will be an end game strategy which fits their temperament, being afraid of substantive reform. Why face a challenge. Besides, somethings just cannot be done. Like getting on the Supreme Court if your not a Harvard or Yale graduate. Or being a scholar on the Great Depression and learning more than that being poor in not good, and staying rich is. But that takes help from the Fed.
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