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United States! Congratulations! Printer friendly page Print This
By Michael C Feltham FCEA, ACPA, FSPA
Axis of Logic
Friday, Oct 3, 2008

The insanity persists!
 
Having allowed the US financial system to create a minefield of such arcane complexity, via Derivative Products, that nobody can accurately predict and thus regulate the downside, the idiots in Congress have decided to go directly against the collective wisdom on Main Street, and bail out rafts of toxic bank debt incurred through idiocy, perfidy, greed and malfeasance.
 
At a stroke, Representatives have elected to devalue the US Dollar on global Forex markets.
 
This affect will not be realised immediately, since capital markets are driven by traders possessed of Lemming Instinct: where the majority go, the rest follow.
 
Synthetic, misplaced and wholly false euphoria will temporarily lift equities markets, as prototypical knee jerk reaction kicks in.
 
However, like most who have been on an extended drunk, after the festivities and the hoopla comes the hangover and the awful reality of what we have been doing!
 
As I suggested earlier
the reality of this bailout will be to dramatically lift the current US Deficit: already in hyperdrive.
 
Perhaps the most critical aspect of all this insanity is the sheer scale of the core problem.
 
Over time, I have watched as US banks, market operators and leverage wizards escalated their greed machine through successively larger machinations: from Syndicated Loans to Third World Debtors, to Junk Bonds to highly geared and obtuse derivative backed securitisation.
 
These last epsiodes in financial greed have turbocharged an already out-of-control and flawed system to the point of implosion.
 
By attempting to "Fix" the problem with floods of Federal funds, all that will happen is a continuum of identical lack of probity.
 
This is like a federal laboratory synthesising cocaine and heroin on the cheap, and shipping tonnes of the stuff to each town and city for free distribution to junkies in the vain and flawed belief it will cure America's social drug problem.
 
It won't.
 
It is going to come back and haunt each and every one of us!
 
Michael C Feltham
October 2008

© Copyright 2008 by AxisofLogic.com

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READ THE BIO AND ADDITIONAL ESSAYS BY THE AUTHOR
AT AXIS OF LOGIC'S FEATURED SERIES

FELTHAM ON THE ECONOMY

Read how the US Government Ramrodded the Bailout Bill Through:

U.S. Citizen: They will pound the bailout through, no matter what you think. "Seller Beware."

U.S. Congress follows the Senate and Rams Wall Street Bailout Down our Throats.

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