Fees, Government Benefit Bankers
The Federal Reserve is jumping in to "provide" financial institutions with a $200,000,000,000 capital infusion, in order to help restore liquidity. Do you know how successful your business would be if the government worked this hard to shore up your mistakes. Actually, you probably do not make that many mistakes, so this kind of intervention would all be gravy.
It is unfortunate that when you borrow you pay fees plus the government you fund with your taxes has the need to compound those fees by working for the benefit of the bankers. This is big government, and the stock market applauds with a 250 point rally.
Shares of mortgage banks spiked Tuesday morning after the Federal Reserve moved to boost liquidity and ease the credit crisis by making up to $200 billion in cash available to cash-strapped financial institutions. [Read]
Is there anyone who believes in a free market? Anyone?
No, the lenders at MoneySpot.com will not benefit as they are small and in business to directly help borrowers. It is the giant, bailed out behemoths they must compete with that benefit. Free market? Any one?