Tuesday, September 30, 2008

I, like John McCain,

have no idea how the economy works. (did I fool you for a sec?) Which is fine for a guy who has no significant debt and about a hundred bucks in the bank, its not ok for the next president who it would appear is going to be handed the largest financial crisis since the great one. The real point of that is to reiterate that I don't have any background in economics at all, theres a significant portion of the pretty basic terminology that I simply smile and nod at.

Now that I have that out of the way, again, I'll get to my point. Apparently right before the fail of the bail the fed pumped a few hundred billion into the banking system. There's a few different numbers on here but it sounds like they increased cash to the banks by 300 billion to bring it up to either 450 or 630 billion, by trading with other national banks. Seems a little weird to me that they wanted the taxpayers to shell out 700 billion if the fed still had the ability to do that on its own. Of course the article also says that the Fed's "balance sheet is about to explode." I don't know much about this shit, but I'm pretty sure that if the Federal Reserve gets in financial trouble then we're in serious trouble.

The roof
the roof
the roof is on fire
but we don't need no water
let the motherfucker burn
burn motherfucker
burn

-Bloodhound Gang

3 comments:

TW said...

Excellent post and I am impressed you managed to get a quote from one of my favourite songs in!

Well done Sir!

Kilgore Trout said...

You're pretty when I'm drunk is another one of my favorites from them.

Rob said...

From a selfish point of view, I'm glad it passed. Being in the wedding business, we're kind of dependent on family of the bride style credit.

But on the other hand, I feel like we've bailed the cocksuckers out one too many times.