capitalism about to self destruct, page-7

Hi Peter,

What "free markets" do you mean?

Working towards it since its 1913 inception, the Fed has now stuffed the free market system. Lots of theories around as to why they did it, none of them very pleasant for the common folk.

Here's the concluding paragraph of an article published today -

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The Contradiction To End All Contradictions

With the Fed stepping up to combat the popping housing bubble, dysfunctional credit markets, and opaque Wall Street balance sheets, it is clear that confidence in the marketplace has been replaced, perhaps permanently, with confidence, or lack thereof, in the Fed. Thus, the questions are no longer how long will U.S. housing prices keep sliding or at what price will Citigroup be able to dump some tier 3 assets, but how long will global policy makers continue to believe that the U.S. Federal Reserve Board can avert catastrophe? Put more simply, how long will the U.S. dollar be thought of as being too important to global commerce to be allowed to implode? It goes without saying that Greenspan’s Fed has ushered in this period of profound uncertainty not only because the Fed failed to achieve a single regulatory effort of note during Greenspan’s tenure, but also because Greenspan explicitly attempted to perpetually delay the consequences of poor investment decisions.

In closing, the consequence of ‘Greenspan’s freedom’ is an even more tyrannical Federal Reserve Board – one that is preoccupied with trying to manage the fallout from asset price bubbles, financial manias, and nontransparent/unregulated financial market quagmires. This is not exactly the outcome Mr. Greenspan would have hoped for and, obviously, this is a situation that should generate many ‘regrets’. Unrepentant, Greenspan suggests that public funds could be used to settle the housing crisis.

“…free competitive markets are by far the unrivaled way to organize economies.”

Freedom, it would seem, can wait for another day.

Posted Monday, 14 April 2008"

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Perhaps read the full article at http://news.goldseek.com/FallStreet/1208178446.php

dub