Wednesday, December 12, 2007

Official Harvard nonsense

Credit crunch was resulted by absence of fiscal responsibility and ridiculously low lending standards in the rat race for financial profits no matter what and if money can be paid back, right?
If "YES" than why now FED forcing banks to accept virtually any collateral?
How about "worthless collateral"? No special provision for that? Just "any collateral"?

Oh well, that decision was the only missing link to force me to change my PermaBull's "Cautiously optimistic" opinion on foreseen future of American economy to "Excitedly Short on America" and even more, due to ingenious involvement of "World's biggest Financial minds" of biggest European Banks - to "Excitedly Short on America AND World Economy as well".

FED proved total inability to control situation either on monetary policies side or press release front.

If just yesterday I still hoped that FED decided to bit the bullet and let American recession to run its course in attempt to avoid another long term disaster by not pleasing the market and taking a stand in form of 25/25 rates cut( Yes - Credit Crunch in such a strong and creative financial industry as American IS a disaster) - today's morning action, its timing, its phrasing, its ridicule confirmed unpleasant obvious fact - "THEY HAVE NO IDEA" ( Thank you Cramer)

I have no questions for "All the King's man", but I do have this question -
If these people in charge are the best America can produce - I vote AGAINST from now on...and "I don't give a damn about wooden nickel" (Imagine - the only time when they sang it was during the Civil War - very comforting...)