Tuesday, December 2, 2008

Throwing Mud Against the Wall

It appears that nobody has any clue as to whether the billions of dollars spent on easing the financial crisis is working or will work at all. Whilst we put our faith in the masters of the financial universe to turn this Titanic of a crisis around, it seems that they are almost as clueless about what to do to solve the issues at hand as my grandmother residing in her assisted living facility. And forget about Congress. If the A students in finance don't get it, how can we expect the C students with all of their grandstanding and focus on self promotion to get it, or to actually do the right thing?

Today in the NYT an article leads off with "The head of a new Congressional panel set up to monitor the gigantic federal bailout says the government still does not seem to have a coherent strategy for easing the financial crisis, despite the billions it has already spent in that effort.
Elizabeth Warren, the chairwoman of the oversight panel, said in an interview Monday that the government instead seemed to be lurching from one tactic to the next without clarifying how each step fits into an overall plan.
“You can’t just say, ‘Credit isn’t moving through the system,’ ” she said in her first public comments since being named to the panel. “You have to ask why.”"

I previously posted an article which put the number of Fed dollars being used for economic stimulus at $7.4 TRILLION dollars. That's $24,000 per man, woman, and child in this country. Why doesn't anyone answer some basic questions for the taxpayers, instead of just ramming through bailout after bailout with our money? I'd like to know:
1) How much money does the Fed actually have?
2) Where does it come from?
3) Is anyone to be held accountable for this spending spree? I mean REALLY accountable.
4) What are the future ramifications of all this spending? If you are not sure, please provide various scenarios.
5) What if it doesn't work?

I have felt from the beginning of this craziness that in 10 years, analysts will look back at the government reaction to this crisis and conclude that at least half of our money was wasted. Yet we will still be stuck with the bill. When you throw enough mud against the wall, some will inevitably stick, but this particular mud is OUR money and OUR future. I for one would like some explanations.

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