Capital Commerce

Bailout Watch: Uncle Sam's Buying Binge May Not Be Over

By James Pethokoukis

Posted: October 15, 2008

Mortgage debt securities. Commercial paper. Shares in banks. What else can the feds buy? Well, pretty much anything, really. Not only does the Paulson plan have a broad mandate, but economist Lyle Gramley, a former Federal Reserve governor, notes that the Fed has within its powers the authority to do just about whatever ever it takes to keep the financial system up and running. Let's say a credit freeze is preventing a small business from getting a loan that it would have gotten under normal conditions. The Fed could go to that small-town bank and tell it to go ahead and make the loan and then the Fed would buy it from the bank. Now if only Bernanke would buy my student loan...

THE GREAT BAILOUT

Obama is--we know--a reader,

And also--it may be--a leader;

But it is very hard to lead

A nation so consumed with greed.

It turns the Christ upon his head:

Meekness and poverty stay dead

Within an economic system

Bailing out theft, but never wisdom.

The "least of these" my brother is,

But no one wants to hear of this,

"Spreading the wealth" the Christian way

Becomes a sin; the poor the prey.

It was the age--O don´t you doubt--

To be known as the Great Bail-Out,

As Wealth bailed from the common good

But left the poor to drink the flood.

.

I.M. Small of MT @ Nov 15, 2008 11:01:18 AM

Greed

Aparently thats exacly what they have been teaching in Economics courses. "Greed is good, dam the consequences!"

of TX @ Oct 16, 2008 00:51:21 AM

GREED

I NEVER HAD AN ECONOMICS COURSE IN COLLEGE. BUT IF I HAD, I WONDER IF THE PROFESSER WOULD HAVE WRITTEN

GREED ON THE CHALK BOARD AND THEN WALKED OUT.

THAT WAS THE ENTIRE COURSE

STEVE BRODY of NJ @ Oct 15, 2008 11:35:29 AM

Add Your Thoughts
About You

advertisement

Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

advertisement

advertisement

Subscribe

U.S. News Digital Weekly

A weekly insider's guide to politics and policy — in a multimedia, digital format. 52 issues for $19.95!

U.S. News & World Report

6 months of U.S. News & World Report's print edition for only $15. Save up to 67% off the cover price!