Thread: Save the US Economy and Rekindle Democracy by Giving the Wor

Save the US Economy and Rekindle Democracy by Giving the Workers a Raise
Economics / Credit Crisis 2008
Apr 13, 2008 - 02:45 PM

By: Mike_Whitney

“ The bright new financial system, with all its talented participants, with all its rich rewards, has failed the test of the marketplace. " Former Fed Chief, Paul Volcker

A specter is haunting Wall Street---the specter of insolvency. One major player, Bear Stearns, has already gone under, and from the looks of it, another may be on the way. It's getting ugly out there. The so-called TED spread---which measures the willingness of banks to lend to each other---has begun to widen ominously suggesting that the money markets believe another body will be floating to the surface any day now.



The ongoing deleveraging of financial institutions and the persistent downgrading of assets has the Fed in a tizzy. Bernanke has backed himself into a corner by stretching the Fed's mandate to include anyone on Wall Street with a mailing address and a begging bowl. Now he's taken on the larger task of fixing the plumbing that keeps credit flowing between the various investment banks. Good luck. He's already burned through nearly half of the Fed's balance sheet of $900 billion and the banking meltdown has just begun. The IMF expects the final tally will be $945 billion, that means $3 trillion in lost loans for the banks. Bernanke better pace himself; this mess could last for years.



The US subprime fiasco has spiraled into what the IMF is calling “the largest financial shock since the Great Depression.â€

WOW, AS7 that was a brilliant loonnnngggg article! Here's my reply to their ideas:

It's sundown on the unions and what's made in the USA
Sure was a good idea until greed got in the way
Bob Dylan, "Union Sundown"