Scalzi says it better. Holy crap. Now that I'm home I'm listening to more news about this. Holy crap.
Not only is there the bail-out of Bear Sterns (call it something else and we'll ask you to wear a sign to warn others, $2 a share is better than what the Enron people got) and a rate cut in a key overnight rate, there is talk of another rate cut come this week's meeting of the Fed. Sounds good? Lower rates, better rates on loans, all that's good, right? (wait for it)
So I'm listening to these chairs of economic departments talking on the News Hour. And they're all saying, "Well, yes, the Fed is taking on all the risk from this sale of Bear Sterns (besides actually floating the loan) by saying they'll cover the bad debt. Well, you know, the Fed can do that. They can print the money (if they need to)." Oh, I feel so much better now.
Isn't this third world economics? Low rates to special groups, printing money when we run out? Holy crap. Has everybody with an economic PhD lost their minds? Hello, can you say run away inflation? I knew you could.
Open notice, if the CEO, CFO, Chairman, Board, or anybody with a VP title or higher at Bear Sterns gets either a bonus, golden parachute, or any cash outlay more than cab fare home, the resulting backlash that will happen you will so totally deserve. Sure, unfortunately your family will be caught up in the fracas as the villagers storm your house to tar and feather you (tar first, boys, the feathers won't stick without the tar) and that's bad. But really, that you're not being asked to give back the past two year's worth of bonuses, consider yourself lucky. As in rub your throat, escape from the gallows, swallow hard kind of lucky.
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