Medicine For the Economy

If Ben Bernanke had any hair on his balls, he would raise interest rates.

But of course, the amount of hair on one's balls does not equate to equalling the number of brain cells in your head.

Here's a prediction. Put your money in money market accounts. The return on investment is going to sky rocket. I'm not saying you will be guaranteed a profit if the Fed continues to follow a hyperinflationary monetary policy. I am only telling you that your losses will be less. If the Fed acts wisely, real after inflationary returns will be realized.

The big banks are threatening that they will crash the economy if the Fed does not provide them with easy money. They think "we" should guarantee their foolish investment decisions. They screwed up and now they want "us" to guarantee them a profit. If it does not happen, they're threatening "through market forces" to squeeze the American economy and force a recession.

Whelp, I say it is about time for the American economy to take a little medicine. Ronald Reagan led us into a time of high interest rates in order to cure that what ails us. Such a time is once again upon us. The excesses of the latter Greenspan days of "easy money" left us weak after our years of partying. Now we have hit bottom. It is time to take some medicine. Most worthy of suffering the consequences of the adjustment are those who grew fattest and "over indulged".

Mr Bernanke needs to, at a minimum, hold the line on the Fed rate. A small increase might be needed, but at least holding the line is MANDATORY. If the Fed continues to increase the liquidity of the financial market all hell is potentially going to break loose.

The financial market took bad risks with easy money. Now they want "us" to bail them out.

"They" are threatening to choke off the supply of money. Well "we" can replace that source of money through an expansion of money available through Ronald Reagan era money market accounts. If the big banks can't figure out how to continue making a dollar on the continuing good credit risks, we can find someone who can. We'll provide the liquidity.

If Ben Bernanke wants to save the dollar, he will not lower the fed rate. Lowering the rate would signal that we have an idiot at the helm of the Fed and we need someone more intelligent at the wheel. Wall Street needs to take its medicine. The medicine might be bitter, but "they" deserve it.

By the way, I've heard foreign investors are getting returns of 11%, with strings attached, as they attempt to return money to our economy. If your money market account is not delivering similar returns, something is wrong. Perhaps you do not have a genius in charge of your money market account.