We heard this week that bailed out mega-bank Wells Fargo made a profit in the first quarter of this year. Big whoop! Let's see, they borrow money at 0% and loan it out to people using their credit cards at 15 to 21% or more. How could you not make money? Any kid running a lemonade stand knows that you can make money with that deal.The questions remain, "what is on their balance sheet?'' Hmmm, credit card accounts that will default soon perhaps? More bad mortgages? All kinds of credit derivatives?
So what happens when any of these items begin to go "belly up"? What happens if they lose big amounts of money in 2009 (in the billions)? Well we all know that they are "too big to fail" and our benevolent federal government will continue to prop up any zombie company (with our money) they believe falls into that category.
Enough is enough! Let the Tea Parties begin. You cannot solve a debt crisis with more debt! Let your representatives in Washington know that you have had enough of the spending that can never be paid off in our lifetime or that of our children and perhaps that of our grandchildren These policies are immoral and will only lead to more economic troubles ahead. And it is time to abolish the Federal Reserve!
The market must correct itself no matter what the duo of Tim & Ben think. They cannot throw more of our money at the problem and make it go away. They can only kick the can down the road which will make coming out of this economic downturn that more painful by prolonging the problem and even making it worse like Hoover and Roosevelt did during the Great Depression.
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