By Mike Whitney
December 08, 2008 “Information Clearinghouse“
Even though the Federal Reserve is now the biggest single participant in the financial system, the myth of a “free market” still lingers on. Go figure? The Fed has expanded its balance sheet by $2 trillion, guaranteed $8.3 trillion of dodgy mortgage-backed paper, provided a backstop for bank deposits, money markets, commercial paper, and created 8 separate lending facilities to ensure that underwater financial institutions can still appear to be solvent. The whole system is a state subsidized operation buoyed on a taxpayer-provided flotation device which bears no resemblance to an invisible hand. More astonishing, is the massive power grab engineered by the Fed which has taken place without the slightest protest from 535 shell-shocked congressmen and senators. Elected officials have either kept their finger in the air to see which way the political wind is blowing or timidly caved in to Treasury’s every multi-billion dollar demand. It’s flagrant blackmail and everyone knows it. Congressional oversight is an oxymoron.
Filed under: Business, Capitalism, Dandelion Salad Posts News Politics and-or Videos 2, Economy, Federal Reserve, Labor, Politics, The Economy Sucks and or Collapse 2 | Tagged: Capitalism on Dandelion Salad, Dandelion Salad Posts News Politics and-or Videos, Federal Reserve on Dandelion Salad, Whitney-Mike | 3 Comments »