Spotlight: Unwinding the Tangled Hedge

Prop it up, prime the pump, hedge the crisis… by any name the papering of the US economy and banking industry since the early 90’s has solved nothing and our problems are now larger and more unstable than ever.

The problems causing the housing crises of 2008 have been sated[1] for a decade, but never solved.  Now, as the Federal Reserve begins raising interest rates and unwinding the mountains of debt on their balance sheets acquired to infuse the US Treasury with liquidity, the flimsy foundation on which it is all built looks to be shivering with stress.  I’ve heard commentators state that for the Fed to have any cards to play in this game at all, they have to raise rates as quickly as possible so that they can lower them again.  At present, with rates still lower than any other period in the history of man, they have almost no room to do that.  Its as if they think that raising rates while people are still struggling to catch up from the difficulties of the past two decades won’t cause problems!  Well, it won’t cause problems for them and their friends… Continue reading “Spotlight: Unwinding the Tangled Hedge”

“Those Who Don’t Learn From History…”

… are doomed to repeat it.”  That’s how the axiom goes.  Well doesn’t this sound frighteningly familiar.

Back in the early 2000’s, as a strategy to “beef up” the economy, the Federal Reserve banking cartel continued flooding the economy with easy money in a move they called “quantitative easing”, or QE2.  They had done it once before with similar consequences.  The “member banks”, and any other banking industry operators who smelled blood in the water at that time, reduced the requirements for home loans drastically expanding the market with “new buyers” who could qualify for loans under new rules which drove up housing prices.  …And then it all fell apart. Continue reading ““Those Who Don’t Learn From History…””