Feral Cat of Freedom's Blog

Matt Taibbi has a link to a priceless animated cartoon by ZeRO HEDGE.  It is a must see.  Two Bears explain what Ben Bernanke (They call him The Ben Bernank) is up to in doing this “quantitative easing” deal.  The bears say QE is “printing a ton of money”.  But Taibbi thinks the big deal is the continual funneling of money to Goldman Sachs.  Watch the two bears and you will finally understand what is going on and it’s not pretty.

http://www.rollingstone.com/politics/matt-taibbi/blogs/TaibbiData_May2010/233953/83512

QE is designed to buy Treasuries and other assets, but the Fed does not simply go out and buy Treasuries itself; it does it through its primary dealers, who include of course banks like Goldman, Sachs. The Fed all but announces when it’s going to be doing this buying and in what quantity, which allows the banks to buy up this stuff at lower prices ahead of time and then sell it to the Fed at inflated cost.

Watch the bears explain why “blowing up the whole world” is not the change we can believe in.  One bear asks, “Is this an episode of the “Twilight Zone”?”

Maybe, but for sure we are all on ‘Mr Toad’s Wild Ride” with the ride operator on a permanent break.

Filed under: Politics | Tagged: Ben Bernanke, economics, Matt Taibbi, Wall Street |